NEW YORK (Standard&Poor's) July 19, 2005--Hewlett-Packard Co. (A-/Stable/A-1) recently announced a program designed to reduce costs and simplify its organizational structure that will include workforce reductions of about 14,500 people, and restructuring charges totaling approximately $1.1 billion over the next six quarters. Standard&Poor's Ratings Services does not expect the restructuring program to have an impact on its ratings or outlook for Hewlett-Packard (HP). Although profitability in the highly competitive personal systems and enterprise segments has been improving on a year-over-year basis over the past 18 months, HP's aggregate operating performance remains sub-par for the rating level. Nevertheless, the ratings on HP continue to be supported by strong results in its imaging and printing group, robust free
