HP cuts salaries of EDS employees by 10%

Hewlett-Packard Co said it will cut the base salaries of some employees in its EDS business by 10 per cent for the month of April. The temporary salary reduction is in addition to a company-wide pay cut HP instituted last month.

The salary cut impacts only EDS workers based in the United States and Puerto Rico and will not affect those making less than $40,000.

A company spokeswoman said in a statement via email that the move is a "temporary cost action to keep the organization strong while increasing financial flexibility."

HP bought EDS last year for $13.2 billion. Last month, after the company cut its full-year outlook and posted weaker-than expected quarterly revenue, HP moved to reduce base pay for all its employees, including a 5 per cent cut for most salaried workers.

HP Chief Executive Mark Hurd has stressed the company's commitment to lowering costs. HP is the world's largest maker of personal computers, and second-largest technology services company.