Houston Chronicle (Houston, TX)

Houston Chronicle Loren Steffy column.(Column)

Byline: Loren Steffy

Apr. 5--Hewlett-Packard workers checking their e-mails on the morning of Feb. 20 were greeted with sobering news.

A memo from CEO Mark Hurd said the company would be cutting salaries for most workers by 5 percent.

Hurd vowed to slash his own pay by 20 percent, or $290,000, and 15 percent for senior management. Pay cuts, he said at the time, were preferable to more layoffs.

"In an environment like this, there's no margin for error and no tolerance for inaction," he wrote, according to Bloomberg News, which obtained a copy of the memo. "My goal is to keep the muscle of this organization intact, but we do have to do something because the numbers just don't add up. …

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