HP to axe 5,700 jobs in Europe

29 May 2009

The world's largest computer maker, Hewlett Packard (HP) is set to cut 5,700 European jobs from its EMEA (European, Middle East and African) operations by relocating its manufacturing plants from the UK and Germany to Czechoslovakia, to cut costs amid the depressed global market for computers.

Palo Alto-based HP, yesterday submitted a restructuring plan for the region to its European Works Council. The plan envisages HP moving its enterprise, storage and servers (ESS) plants from Germany and Scotland to the Czech Republic in 2010.

This would result in about 5,700 jobs being lost across the EMEA region over the next two years from a workforce strength of approximately 80,000 employees in this region.

The move will affect 843 jobs at the Erskine plant in Scotland, which currently employs around 1,300, but the company has not yet released details of the number of jobs being lost in Germany as the result of the relocation of its plants.

"In keeping with governing local law and established practice, HP will consult with employee representatives in the countries affected by the proposal on the conditions for the implementation of the restructuring measures," the company said in a statement.

Many of the job cuts are also related to the company's plan to cut 24,600 jobs over three years as it integrates enterprise technology firm Electronic Data Systems Corp, which it acquired for $13.9 billion in August, to emerge as IBM's strongest challenger. (See: HP completes $13.9 billion acquisition of EDS)