Following a run of poor quarters and with depressing third quarter results due in a couple of weeks, Hewlett-Packard Co said it plans to cut the salaries of 2,400 of its mid to upper level managers in an effort to control costs. The computer and printer giant, which last week issued a profit warning for its third quarter, said it would impose a three-month, 5% pay cut for the managers and would also close its US offices for four days between Christmas and the New Year. This is the first time the company has had to make any such moves since 1985. It’s also asking all non-US operations to shut down their offices for comparable four day periods. The latest round of pay cuts came into effect on August 1 but industry rumor has it that various other divisions of HP, such as its Test and Measurement products division, have already asked some employees to take salaries reductions. More details are expected when the company reports its third quarter results on August 17.
