H-P jobs cuts likely set before August - Merrill

[UpInArms]

http://www.marketwatch.com/news/newsfinder/pulseone.asp?siteid=mktw&guid=%7B5D8718B8-8452-4F5E-BEDA-949DB6DF84AA%7D&

LONDON (MarketWatch) -- Merrill Lynch told clients it expects PC and printer maker Hewlett-Packard (HPQ) to announce significant cost reductions before the company details its July quarter in August. "A hypothetical 5-10% workforce reduction would produce 21 cents to 42 cents in annualized savings, according to our estimates," the broker said. H-P Chief Executive Mark Hurd "is benchmarking every business, including overhead allocations, as he did at NCR. If history is any guide, he will find significant opportunities." Overnight, H-P's new chief executive indicated that the company is close to unveiling an anticipated restructuring, sending H-P shares up nearly 5% in late trading.

...very short newsblurb...

HP has approximately 150,000 employees - thus the cuts may be from 7,500 to 15,000.

[mapatriot]

1. Credible

Merrill Lynch has been "on the money" in predicting trends in the tech industry - far better than the other wirehouses. I take this seriously.