HP to Cut 1,800 More Jobs; Company Cites Weak Demand By Companies, Consumers

All cuts are expected to be completed by Oct. 31, the end of the company's fiscal year.

Like other high-tech companies, Palo Alto, Calif.-based Hewlett-Packard has been hit hard by reduced spending by large corporate customers. Its bottom line also has suffered because of weak demand for personal computers, though its printing and imaging division continues to do well.

In the letter sent to employees Tuesday, Hewlett-Packard executives said the company continues to hire in some areas, including printing and services.

HP's $18.9 billion merger with Houston-based Compaq closed in May after a ferocious proxy battle. Combined, the companies had 150,000 employees.

In the first full results since then, Hewlett-Packard lost $2.03 billion in its fiscal third quarter, compared to a loss of $116 million if the companies had been together last year.

Copyright © 2002 The Associated Press. All rights reserved. The information contained in the AP News report may not be published, broadcast, rewritten or redistributed without the prior written authority of The Associated Press.