Hewlett-Packard (H-P) has ruled out wage hikes in 2009 and plans to cut costs and limit hiring to weather impact of the global financial crisis.
"For this year's focal point review cycle, there will be no salary increases, except where legally required," H-P leadership team said in an e-mail to its employees. An official with H-P who did not wish to be identified said pay hikes for India employees were expected in February.
H-P in India, including MphasiS majority-owned by EDS, is expected to have approximately 60,000 workers on its rolls. An H-P spokesperson declined to detail country specific head count figures.
The leadership team announced a series of measures to cut discretionary spending. These include reducing contractor agency spend, limiting hiring to revenue generating positions, and curbing company travel.
The e-mail further said "Comprehensive benefit reviews are continuing on a country-by-country basis to harmonise H-P and EDS offerings based on market practices."
H-P leadership has directed internal meetings to be conducted virtually, adding "recognition and learning and development programs are also affected."
The e-mail signed by eight members of the senior leadership team said: "These are difficult actions, but necessary in the current environment."
"With all of us pulling together, we have an opportunity to increase market share and emerge from the downturn in a meaningfully stronger competitive position."
H-P has already announced plans to axe 24,600 jobs globally, approximately 8 per cent of its 320,000-employee work force, in a restructuring exercise to save more than $1 billion a year.
