HP May Fire Contract Workers

HP expects to save $15 million to $20 million by imposing the three-week furlough on all but its most critical technology contractors from Monday through July 12, spokesman Arch Currid said.

If HP decides to release some of those workers, those cuts would come in addition to the 15,000 jobs that are being slashed at HP because of its $19 billion acquisition of Compaq Computer Corp. Many cuts are being achieved through voluntary retirement programs.

In a separate cost-cutting move announced last month, Palo Alto-based HP is shutting down its United States operations from June 30 through July 6 and requiring employees to go without pay or use up vacation time. HP has not said how much money that plan will save.

The company has 74,000 U.S. employees and 150,000 overall.

HP shares fell 30 cents, or 1.8 percent, to $16.65 in trading Thursday on the New York Stock Exchange.

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