HP to cut over 3,300 UK jobs

[DerekLeung]

HP is set to cut more than 3,000 UK jobs over the course of two years, causing warnings from the PCS Union.

By Janae Olinger, 17 Dec 2008 at 09:14


After HP acquired Electronic Data Systems (EDS), it was announced that some 24,600 jobs would be axed worldwide.

Now, the figures are coming into perspective as more jobs from the UK and from Europe, the Middle East and Africa (EMEA) will be cut.

“HP expects that the number of positions impacted for the UK is up to 3,378,” said HP in an emailed statement.

“HP expects the Workforce Management exercise in EMEA to affect approximately 9,300 employees over a two-year period, with roughly half of these positions replaced to create a global workforce that has the right blend of services and delivery capabilities to address the diversity of its EMEA markets and customers.”

The Public and Commercial Services Union (PCS) - of which more than 2,000 EDS staff are a part of - said they “vigorously oppose” the plan to axe one fifth of EDS jobs in the UK.

“This announcement creates further uncertainty with little or no detail of where the axe will fall and comes as a huge blow to the workforce in a time of economic turmoil,” PCS general secretary Mark Serwotka said.

EDS has contracts with the Ministry of Defence (MoD) and the Department for Work and Pensions (DWP). Serwotka added: "Our concerns about government IT contracts in the MoD and DWP will not be alleviated by this announcement. It’s not just jobs that are at risk, but the delivery of public services that rely on IT services provided by the former EDS.”

 

[DerekLeung]

Concern mounts that some jobs are for the chop as a result of the recent EDS acquisition.

By Maggie Holland, 17 Dec 2008 at 09:19


HP and EDS management are expected to meet later today to discuss how to integrate the two companies together, following HP's $13.9 billion acquisiton of EDS earlier this year.

However, unions are fearful that this integration will result in mass lay-offs, with some reports suggesting more than 1,000 jobs could be slashed from the UK alone.

"The combination of HP and EDS will create a leading force in global IT services," Mark Hurd, HP’s chairman and chief executive said when the acquisition was announced.

However, the combined company is unlikely to need as many people as are currently on the payroll.

“We’re waiting for details to emerge as we know that EDS and HP managers are meeting today. [Hopefully that will] give some detail on the impact on the workforce. Once we know those details we will put something formally out,” a spokesman for the Public and Commercial Services (PCS) union told IT PRO.

“There is a real fear that there will be job cuts,” he added, suggesting that a more formal announcement would be made once the union knew the full extent of the merger plans and their affect on staffing.

HP was remaining tight-lipped on the possibility of job cuts.

“We regularly review our operations to ensure they continue to offer the best possible value to HP customers and to ensure that they are aligned to our growth objectives," the company said in a statement issued to IT PRO.