This month, I am dedicating this column to empathize with workers all over the world affected by the ravaging global economic meltdown. I particularly feel for Nigerians who have been laid off their work places as a result of this unfortunate economic development.

As you read this, there are unconfirmed rumours making the round that some Nigerian banks are either asking their staff to resign or are by installments, laying off their staff as survival mechanisms in these uncertain times. This could be true considering the fact that unlike this time the previous years, banks appear reluctant at employing young Nigerian graduates.

But as we wait for the day employment will resume, we are worried that unemployment rate will skyrocket this period. The most unfortunate thing is that this is a global crisis. And this is why some moralists are questioning the morality in sacking workers as against cutting their pays.

Perhaps, it was in response to this that leading world PC maker, Hewlett Packard (HP), in spite of posting a 20% revenue shortfall, took a position that should have been a better solution towards preventing this global crisis from escalating in the very near future. HP, through her CEO, Mark Hurd decided to cut her workers' pay instead of laying them off. And this measure cuts across the board.

As I welcome you to read an abridged version of the letter by HP's chief executive to the staff, I believe that if only companies can cut the so-called 'fat' pays, it will go a long way to rapidly bringing to an end, this global challenge. Otherwise, sacking workers will make the end of this crisis look uncertain.

For the first time in a long time, the dollar was strengthening, so the currency conversion was actually a headwind for us. We also continued to show strong operating leverage with non-GAAP operating profit up 10 percent year-over-year. This was a solid performance, and I thank all of you for your efforts.

In an environment like this, there's no margin for error and no tolerance for inaction. To give you a little insight into my world, after we report our earnings, we engage in a dialogue with analysts and investors. They're going to ask what we're doing in light of the current environment to right-size these businesses.

The math is pretty straight forward. From a productivity standpoint, you're supposed to reduce headcount on par with declining revenue. If you believe the environment isn't going to improve, you should take a bigger cut to get in front of the problems. You can do the calculation, as easy as I can. We have about 100,000 people in our product businesses, with revenue down roughly 20%, and an environment that may not get any better in 2009.

There are pockets where restructuring needs to happen, and areas where actions will be taken as part of our ongoing workforce optimization process. But at a company-wide level, I don't believe a major workforce reduction is the best thing for HP at this time.

I think we are fundamentally sound, and when the economy picks up, I want HP to be strong, and to take share and to outgrow the market. I said it last quarter; my goal is to keep the muscle of this organization intact. But we do have to do something…because the numbers just don't add up and we need to have the flexibility to make the right long-term investments for HP.

So we are going to take action. We have decided to further variablize our cost structure by reducing base pay and some benefits across HP. My base pay will be reduced by 20 percent. The base pay of Executive Council members will be reduced by 15 percent. The base pay of other executives will be reduced by 10 percent. The base pay of all other exempt employees will be reduced by 5 percent. For non-exempt employees, base pay will be reduced by two-and-a-half percent.

Again, there are no guarantees. If the environment gets worse, if the downturn lasts longer than we're assuming, if our performance declines, we'll have to reassess. But for now I believe this is the right thing for the strength of HP.

I know this is a tough time. But if we get this right, HP can be the kind of company that not only has led, but will extend its leadership. We can emerge from this recession in a powerful position to create value for our customers, our shareholders and our people for years to come.

Thank you.
Mark