Local manager launches Hewlett-Compaq merger

Taiwan's entity for the merged company between Hewlett-Packard Co and Compaq Computer Corp was officially launched yesterday as the Taiwan's new general manager Rosemary Ho (何薇玲) saying a corporate streamlining plan will take place within a month.

"Everyone here is looking for a number [of layoffs]. But that number doesn't exist today," Ho said at a press conference. "We will have that number out within 30 days."

Ho was chairman of Compaq Computer Taiwan Ltd before taking the new position. Compaq is being acquired by larger rival Hewlett-Packard Co in a US$18.3 billion merger.

Hewlett-Packard Chief Executive Carly Fiorina had said the combined company will fire 150,000 employees worldwide and the cuts will take place in six to nine months. But Ho declined to specify how many jobs will be axed in Hewlett-Packard Taiwan Ltd, saying it is currently focusing on retaining its customers.

"Over the next 30 days I will lead my colleagues to visit each of our customers around the country. We want to assure them [that they will have] the same quality services before, during and after the merger," Ho said.

Hewlett-Packard Taiwan will incorporate four main business units with Ho herself heading the enterprise services group, Ho said. She also introduced to the press Jason Juang (莊正松), who will lead the personal systems group, while Huang Shieh-hsiu (黃士修) will chair the imaging and printing group, and Simon Huang (黃志明), the customer services.

The company is expecting to achieve at least 48-percent annual growth rate this year in the sales of imaging and printing devices, which include computer printers and scanners, Huang Shieh-hsiu said.

While there is a wider speculation that Hewlett-Packard may want to cut the numbers of its Taiwanese suppliers for notebook computers, desktop computers, personal digital assistants and servers, with an aim to remove duplication of manufacturing and reduce costs, Ho refused to elaborate on the subject. "Because of our IPO [international procurement office] representative is not here, nothing I can say [about it]," she added.

Compaq and Hewlett-Packard were the biggest foreign buyers of Taiwanese electronics last year, ordering about US$9 billion and US$5.6 billion respectively. Analysts said companies including Mitac International Corp (神達電腦) may lose business or be forced to lower prices to be attractive to Hewlett-Packard.