's shares crept up in Friday trading following the firm's decision to freeze salaries in an attempt to cut costs and combat the weak economy.
An H-P spokeswoman confirmed that the company has instituted a temporary suspension of salary increases after
reported that the company had placed a hold on pay raises. The only H-P employees who are not affected are those in countries where pay freezes are illegal, according to the news report.
"In this difficult macro-economic environment, we believe it is prudent and responsible to reduce costs where possible," wrote the H-P spokeswoman, in an emailed statement. "H-P has a long-standing and disciplined approach to managing costs in order to invest in the company's growth."
The firm's stock rose 34 cents, or 1.02%, to $33.73, in Friday afternoon trading as the Nasdaq rose 2.44%.
H-P, which employees 320,000 people around the word, is seen as one of the key indicators for the health of the tech sector. The company has already undertaken a slew of restructuring measures, including job cuts, internal re-organization, and data center overhauls.
Despite an increasingly difficult economic climate the company
Wall Street's revenue estimates in its recent fourth-quarter results. H-P CEO Mark Hurd attributed the growth largely to the company's services business and "disciplined" expense management.
The computer manufacturer, which competes with
in hardware, and with
in services, also expects to shave a $1 billion off its expenses through its ongoing integration of services giant