HP cuts pay to avoid job cuts
US based tech giant Hewlett Packard has apparently applied a pay cut across the company.
This step was taken to avoid potential job cuts as the company too is feeling the pinch of the weakening economy.
Inside sources say that the company CEO Mark Hurd said in an internal memo that they had to take this step to compensate for poor performance in several areas due to the ongoing economic recession.
The pay cut is applicable to everyone including the top management. Hurd himself is losing 20 percent while the Executive Council members are facing a 15 percent cut.
Other senior executives are now facing a 10% salary cut while junior employees in the company would get a relatively smaller pay cut.
Sources quoted Hurd as saying: “To give you a little insight into my world, after we report our earnings, we engage in a dialog with analysts and investors. They’re going to ask what we’re doing in light of the current environment to right-size these businesses”. He added that the company is fundamentally sound and they are not aiming to cut any jobs to save money in the near future.
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