At Deadline Briefs

Staff Cuts to Cost HP $200 Million

Hewlett-Packard Co. plans to spend $200 million on staff reductions over the next six months, the company said last week in a regulatory filing. HP didn't specify the total cuts or which business areas they would affect. HP has regularly adjusted its workforce since buying Compaq Computer Corp. In the first nine months of its 2004 fiscal year, HP reported restructuring costs of $101 million. HP currently employs about 145,000 workers.

IBM Buys Insurance Processing Firm

IBM is acquiring Liberty Insurance Services Corp., the U.S. business process services operation of RBC Insurance. When the deal closes, LIS will become an IBM subsidiary focused on handling life insurance and annuity policy processing for several insurance companies worldwide. IBM bought the firm to capture part of what's projected to be a $2 billion global market next year. IBM will retain the 700 LIS employees.

Citrix Makes Play For VoIP Presence

Citrix Systems Inc. last week agreed to purchase Net6 Inc., a privately held maker of Secure Sockets Layer virtual private network technology, for $50 million in cash. San Jose-based Net6 has 30 employees. Citrix said the acquisition will boost its stable of secure remote-access technology and give the company a foothold in the voice-over-IP market.

Cingular Plans to Slash Force by 10%

Cingular Wireless LLC last week disclosed plans to cut about 10% of its 68,000 workers over a 12- to 18-month period starting next year. The company confirmed the layoff figure less than a month after completing its acquisition of AT&T Wireless Services Inc.

Copyright © 2004 IDG Communications, Inc.

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