HP staff sent home to ponder their future

'Go home, and we'll tell you when or whether to come back...'

Hewlett Packard has sent home 4,000 US contract workers while it mulls over who to keep and who to let go.

HP claimed the decision is part of the current cost cutting process following its $18.7bn merger with Compaq. The company is eager to avoid overlap between its products and workers and those inherited from Compaq.

Over the next three weeks, HP will make decisions on which contracts it wants to renew. All decisions will be made by 12 July and the process could save HP up to $20m.

HP has already stated it wants to cut 10 per cent of its workforce as it strives to save $1bn.