HP extends IT gloom forecasts to 2004

THE BORN AGAIN HP is not pinning its hopes on any upturn in the technology sector before 2004, an executive Veep at the firm said.

Instead, the company is likely to continue to hack and slash its way through its workforce, nicely expanded through its acquisition of Compaq, in order to cut costs.

Michael Winkler, head of global operations at HP said the company could feasibly cut its costs by more than the the $3 billion target set by the mighty Carly Fiorina.

The total number of casualties of the merger stands at around 16,800 humans, and Winkler said he didn't expect the toll to rise beyond that. "I don't think you'll see a dramatic difference from what has been published today in the head-count side of things," he hold reporters. Instead he thought the savings savings could come in "procurement, logistics and distribution and IT," Reuters reports.

Further job cuts are not ruled out, however. "I think nobody is counting on a recovery in 2003 now" said Winkler. "Lord knows we'd like to see it happen in the second half of the year," he added, though the firm's not counting on it.

"Technology buying has not recovered the way people had hoped for, and the survivors are going to be the ones that have very lean cost structures," he said.

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