Hewlett-Packard Co. is eliminating four research groups and about 70 workers from HP Labs, the division responsible for advanced research and technology, as part of the company's 14,500 job cuts announced last week.
HP Labs will lose about 10% of its 700 workers, HP spokesman Dave Berman said Monday. The Palo Alto-based company also eliminated three groups within HP Labs to "flatten" the organization, he said.
Among the projects being cut is a software program headed by Internet pioneer Alan Kay.
HP, the world's largest printer maker, spends almost eight times as much as rival Dell Inc. on research and development.
Analysts such as Sanford C. Bernstein & Co.'s Toni Sacconaghi in New York say Chief Executive Mark Hurd may cut as much as $500 million from its $3.5-billion annual budget by ending "non-core" projects.
"These are projects that, while they're very worthwhile, are not absolutely core to our business," Berman said.
"We need to put our focus on those projects that represent the greatest opportunities for us," Berman said.
HP Labs, which accounts for about 5% of the company's research-and-development spending, will continue to be run by Dick Lampman, Berman said.