Compaq Lays Off 450 Staff in Ongoing Restructuring

SAN FRANCISCO (04/20/2000) - Compaq Computer Corp. has laid off about 450 employees as part of its continuing efforts to slash its worldwide workforce by 7,000 people, a company spokesman confirmed today.

The latest job cuts occurred yesterday in the Houston, Texas-based PC vendor's Commercial PC Group, Compaq spokesman Alan Hodel said in a phone interview today.

"It's unfortunate anytime somebody's job is affected, but it's necessary for the company to position itself for future growth," Hodel said.

In July of last year, Compaq Chief Executive Officer and President Michael Capellas announced that the firm would lay off between 6,000 and 8,000 people from a total of almost 70,000 employees after the company posted a loss of US$184 million, or 10 cents a share, for its second fiscal quarter. [See "UPDATE 2: Compaq Posts Loss, Cuts up to 8,000 Jobs," July 28, 1999.]Hodel said Capellas' job reduction mandate will be achieved by Compaq's mid-year target date. He declined to comment on how many positions have been cut overall, but said more details would be forthcoming at Compaq's conference call for its first fiscal quarter earnings report Tuesday. The company employed 67,000 people at the beginning of this year, according to Hodel.

Compaq, in Houston, Texas, can be reached at +1-281-370-0670, or at http://www.compaq.com/.

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