Compaq: More job cuts in Asia-Pacific

SINGAPORE--Compaq Computer expects more job cuts across the Asia-Pacific region following an additional $200 million cut in annual operating costs, a company executive said. Although Paul Chan, managing director of Compaq Asia Pacific, would not provide a specific figure, he said the move was in line with Compaq's new strategy to focus on building its services unit. Compaq employs 3,000 people in Asia-Pacific (excluding Japan and China). Chan told CNET News.com on Monday that despite the impending layoffs, Compaq will be hiring additional workers, including solutions architects and systems integrators, to grow its services business. He did not elaborate. Chan hopes to increase the company's services revenue to one-third of its total sales in two years. Its current customers for services include Australia's Cable & Wireless Optus, Malaysia's Maxis and DBS in Singapore. Staff writer Irene Tham reported from Singapore.