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2,000 get the Compaq sack

Compaq has announced it is to lay off another 2,000 staff as its first quarter figures revealed a slide in the US, despite double-digit growth in Europe and Asia.
Written by Ron Coates, Contributor

Compaq has announced it is to lay off another 2,000 staff as its first quarter figures revealed a slide in the US, despite double-digit growth in Europe and Asia.

The job cuts will bring the total to 7,000 - about 10 per cent of Compaq's workforce - and the company is pursuing a regime of cost cutting, including taking a $249m charge for writing off excess inventory. Michael Capellas, chairman and CEO at Compaq, said: "We are taking a very aggressive stance to make sure that we are positioned if the market stays at its current level. But I do think the second half is going to be better." During the first quarter rival Dell overtook Compaq to gain 13 per cent of the worldwide market. Compaq turnover increased by 14 per cent in EMEA, by 31 per cent in Japan, 29 per cent in Asia Pacific and 17 per cent in Latin America. Turnover in North America was down 17 per cent. For the first quarter, Compaq had a turnover of $9.2bn - down from $9.5bn on the same period the previous year. Profits were $200m as opposed to $296m for the comparable period in fiscal 2000.
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