US computer maker Compaq is cutting a further 2,000 jobs in the wake of a 29 per cent fall in pre-tax profits to just $78 million in its first quarter, the company said today.
In the same period last year it made pre-tax profits of $200 million - £138.7 million.
The world's second-largest maker of personal computers is cutting 2,000 jobs on top of the 5,000 announced in March, meaning it's shedding 10 per cent of its workforce.
The firm, which employs up to 2,200 people in Belfast, Dublin and Galway, says the 7,000 workers will lose their jobs by next week, with 4,500 being sacked and 2,500 being lost "through attrition".
Although the company met its own lowered forecast of earnings per share of 12-14 cents a share, it disappointed Wall Street forecasts of around 13 cents.
"We're making the tough decisions now so we'll be better prepared to take advantage of the market when it strengthens, which it will," chairman and chief executive officer Mr Michael Capellas said.
Capellas expects profits to rebound "strongly in the second half, regardless of market conditions."
Compaq blames aggressive pricing by competitors and a sharp decline in North American personal computer sales in the wake of a slowing economy.
PA