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Hewlett the Dogs Out: H-P Warns Again, Plans More Firings

It's the third time the company has warned on its third quarter.
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Printing and computing giant

Hewlett-Packard

(HWP)

warned Thursday that fiscal third-quarter sales would fall below well-lowered expectations, and set plans to fire 6,000 more workers.

The Palo Alto, Calif.-based company said that it now expects third-quarter sales to fall 14% to 16% from the prior year. H-P cited the same deterioration of global demand it cited when it

warned at its semiannual analyst meeting in June of slower-than-expected sales for its third quarter, which ends July 31.

"Economies around the world continue to weaken as we move through the quarter," said CEO Carly Fiorina in a statement, adding that hardest hit was the consumer business, where the company expects sales to decline 24% from the prior year.

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Astonishingly, this is the third time H-P has warned on its third quarter. In all, H-P has warned six times in 2001, the first coming

Jan. 11, the second

Feb. 15, the third

April 18, the fourth

May 16 and the fifth on June 6.

The job cuts aren't the first of the year, either. H-P has already fired about 1,000 employees in 2001. It employs about 93,000 workers.

In June the company asked all of its employees to take either a pay cut or unused vacation days. More than 80,000 employees volunteered for the program, which the company said should save it $130 million in operating expenses for 2001.