Hewlett Packard Plans Layoffs

Hewlett-Packard Co. announced plans Friday to cut up to 2,500 jobs, or 2 percent of its workforce, becoming the latest high-tech business to slash costs due to the Asia slump and slowing demand for personal computers.

The big maker of computers, printers and high-tech accessories had already announced a $150 million restructuring charge this quarter to pay for belt-tightening measures. Hewlett-Packard said it expects 2,500 of its 127,200 workers to accept voluntary severance offers, including about 800 in Silicon Valley.

Hewlett-Packard also is moving some employees and manufacturing to less expensive sites, closing most of its facilities during the December holidays, curbing new hiring and reducing expenses such as travel. And company managers are swallowing a 5 percent pay cut this quarter.

In other recent cost cuttings, Intel Corp., the world's largest maker of computer chips, cut 3,000 jobs and Motorola Inc. shelved plans for a $3 billion memory-chip plan in Virginia.