Palo Alto, UNITED STATES: (FILES)The entrance of Hewlett-Packard head quarters in Palo Alto, California is shown in this 20 August 2005 file photo. Strong notebook computer sales and cost cutting helped drive a 30 percent increase in Hewlett-Packard Co.'s fiscal first-quarter earnings as the computer and printer company continued its turnaround under CEO Mark Hurd. Hewlett-Packard, the printing and computer services giant, fell 82 cents to 31.67 15 February 2006, ahead of its quarterly earnings report. After the bell, HP reported a first-quarter profit of USD 1.2 billion dollars, topping analyst forecasts. AFP PHOTO / HECTOR MATA (Photo credit should read HECTOR MATA/AFP/Getty Images)
Fewer people are buying H-P computers and printers.
Company executives say trimming employees will help keep prices low.
The company was formed after the break-up of H-P last year.
It already axed about 3,000 employees since then.