Local Compaq and Hewlett Packard staff members will undergo an as yet undefined selection process to determine who gets the chop from the merged entity.
A local Hewlett Packard (HP) spokesperson said she could not reveal details of what is involved in the selection process, how many employees will be cut, or which business units will downsize.
She said the managed selection process is a global program, but each local entity will be involved at a strategic level determining the details, to fall under each country's local employment laws.
Staff at both local subsidiaries await details of what will be involved in the selection process and when it will begin.
The newly merged entity's managment team also faces a reshuffle of current executives. The HP spokesperson revealed that the two companies have finalised which executives will head the four different business units in Asia Pacific, but no names have been revealed at this stage.
Recently appointed Compaq Australia managing director Paul Branding will lead the Australian merged entity and indications are that the management team will also be weighted towards Compaq executives.
This is in line with the US directive, which says Compaq president and CEO Michael Capellas will take over as the president of HP once the merger is complete.
Compaq remains tight-lipped about the implications of the merger on the head count and operation of the Australian operation, but will hold a briefing for media and analysts on May 9.
This is the day after the gathering of customers, media and analysts in the US for the official launch this Tuesday, US time. It is believed the merged entity will unveil a company road map at the briefing