TECHNOLOGY - July 11, 1996

Hewlett-Packard Quits Disk Drive Business: The Palo Alto-based computer, printer and test-and-measurement maker said it is leaving the unprofitable business, a move that will mean nearly 1,700 layoffs and a $150-million charge against the company’s earnings this quarter. It will close its disk memory division, which had operating losses of about $100 million in the first half of the current fiscal year. It will now concentrate on the extended storage market, which includes tape drives and CD technology. About 1,150 jobs in Boise, Idaho, and 530 in Penang, Malaysia, will be cut as a result of the restructuring. The news was reported after markets closed. HP said order growth across its broad product line has fallen during the first two months of the quarter, which ends July 31. HP Chairman Lewis Platt said it remains to be seen whether the slowdown in order growth indicated a temporary change in demand or a fundamental shift.