HP and Compaq set about axing staff

Hewlett Packard (HP) and Compaq will next week inform staff how the proposed merger will affect the internal structure of the company, and announce which senior executives will keep their jobs.

HP announced shortly after it declared its intent to buy Compaq last year in a deal valued at $22bn, that it would be axing around 15,000 staff, but how the cuts will be made has remained a mystery.

According to US reports, staff at both companies received a memo from HP chief executive Carly Fiorina and Compaq chief executive Michael Capellas this week, informing them that they will receive an overview on how the selection process to fill vacancies will be made under the merged company.

It is already known that Fiorina will retain her position as chairman and chief executive, while Capellas will become president.

Both companies have also told staff that each intends to complete the merger within the next two months, despite the fact that Walter Hewlett is still maintaining that the shareholder vote was too close to call.