Compaq's local operations escape cuts

Compaq's local operations appear to have emerged unscathed in the wake of the company's second-quarter $US184 million loss.

Up to 8000 Compaq staff will be made redundant as the international company attempts to restore its growth and financial position.

Ian Penman, Compaq Australia's managing director, said a buoyant local market and positive local results were likely to prevent any staff cuts.

Locally, Compaq reported a 14 per cent increase in its second quarter revenue compared with the same time last year. The results were bolstered by significant growth in the Compaq Services organisation and strong revenue from its Alpha and Himalaya systems.

"I don't anticipate any staff redundancies," Penman said. "But that doesn't mean to say we're not constantly looking at having the right people in the right job."

Compaq employs around 2500 staff, including contractors and permanents, in Australia and New Zealand. Penman said there were 150 local redundancies following Compaq's Digital acquisition last year.

"We made the savings last year, we made the redundancies," he said.

Globally, there are still 2000 staff redundancies to come from the Digital acquisition, Penman said.

Further staff cuts would be made with the consolidation of Compaq's manufacturing plants, but Penman said he had received "no guidance as to the geographies affected" by the redundancies.

Meanwhile, Compaq subsidiary Compaq Capital announced yesterday it had acquired the European and Asia/Pacific interests in Leastec Corporation, a joint venture with Compaq and KeyCorp.

The transaction brings virtually all of Compaq Capital's global financial service offerings in-house.

Compaq Capital formed a partnerships with Leasetec early last year as a way of delivering Compaq products to its channel and customers in the region.

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