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HP deal: Some get layoffs, others bonuses

Time: 15:33 EST/20:33 GMT | News Source: CNET | Posted By: Guillaume H�bert

Although it plans to lay off thousands of workers if its merger with Compaq Computer goes through, Hewlett-Packard is also offering hefty bonuses to some 6,000 key employees it wants to keep. In a filing Monday with the Securities and Exchange Commission, HP said it would offer the eligible managers and workers a payment equal to half their salary plus a "target bonus." The money would be payable in two installments, the first upon closure of the deal and the second a year later. If all eligible employees took advantage of the deal, HP estimates it would pay out $168.5 million for each installment. If the merger does not close, no payments will be made under the program.

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