(Updates with company comment)
SAN FRANCISCO Nov 17 Hewlett-Packard Co
(HPQ.N) has notified employees that it will extend its planned
one-week holiday shutdown by an additional week as a
cost-cutting measure, it said on Monday.
The majority of employees will be paid during their time
off, the company said.
"Shutting down during a period when many employees
traditionally take vacation helps HP achieve operational
savings and allows employees to enjoy more time with their
families," a spokeswoman said.
The global financial crisis and slowing economy have roiled
the prospects for PC makers, which are scrambling to rein in
costs. Many analysts now predict that PC shipments will fall in
Some analysts have said HP was better insulated than some
of its competitors from the impact of the economic downturn,
because of its recurring revenue streams from services and
software and limited exposure to the PC market.
The company said in September it would lay off 24,600
employees following its acquisition of Electronic Data
Earlier this month HP rival Dell Inc DELL.O asked
employees to consider taking up to five days of unpaid vacation
as it works to cut costs.
Silicon Valley was hit with a slew of layoff announcements
last week from big names such as Sun Microsystems JAVA.O and
Applied Materials Inc (AMAT.O).
Shares of Palo Alto, California-based HP closed down $1.12,
or 3.7 percent, at $29.34 on the New York Stock Exchange.
(Reporting by David Lawsky and Gabriel Madway, editing by