H-P Slashing Jobs At Vancouver Plant

Hewlett-Packard Co. said it will eliminate 1,000 jobs, or a third of the work force, at its Vancouver, Wash., plant amid a shift in customer taste to lower-priced ink-jet printers.

No employees will be fired, H-P said. Rather, they will be offered other jobs within the company. The jobs will be phased out over the next six months.

H-P’s news came a day after the company reported that first-quarter earnings fell below analysts’ estimates amid falling prices for printers and personal computers. Printers account for about a third of H-P’s profit. The restructuring of its ink-jet printer business will reduce earnings per share by about 7 cents in 1998, the company said.

Workers will receive relocation benefits if their new jobs require them to move. The Vancouver plant, which employs about 3,000 people, also will lose 200 jobs making printed circuit boards.

H-P said the moves will save the company about $100 million a year. The company said Tuesday net income in the first quarter ended in January rose 1.9 percent to $929 million from $912 million a year earlier.