HP Israel is making more cutbacks. Yesterday, management notified employees that, beginning in June, it will implement the instructions of Hewlett Packard Co. chairman, president and CEO Mark Hurd to cut salaries by 5%.
Hurd publicly announced the pay cuts in February, as part of HP's attempt to cut costs to cope with the economic crisis. HP has 5,000 employees in Israel, who work at different companies in several fields, including sales of computer products, software development, and the manufacture of printers.
HP Israel stated in the letter, "In view of the challenges we face due to the global economic situation, and in view of its consequences on HP's profitability, HP has to carry out essential measures to preserve its financial soundness."
Published by Globes [online], Israel business news - www.globes-online.com - on April 22, 2009
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