Financial News

  • 5 December 2013, 11:22

Hewlett-Packard To Cut 1,100 UK Jobs In 2014

Hewlett-Packard (HP) has confirmed it is planning to cut 1,100 jobs at the start of 2014 from three UK sites.

The US-based firm - which remains the world's biggest maker of PCs - will axe 1,124 posts in total from its operations in Bracknell, Sheffield and Warrington during the first three months of the new year.

The company, which was reacting to an apparent leak by the Unite union, said the proposed losses were part of a workforce management plan that was first raised in May 2012 and expected to result in 7,000 staff losing their jobs across Europe, the Middle East and Africa.

HP said at that time it was looking to save £2.2bn, which it would invest in growth areas like 'cloud' storage technology.

Unite national officer Ian Tonks said today: "For the last five years HP has been addicted to a culture of job cuts in the UK, to such an extent that its highly skilled workforce has little faith in the way the company is being managed and will be going forward.

"Unite will be doing everything possible to mitigate these job losses which are a hammer blow to the UK's IT sector and very distressing for employees in the run-up to Christmas."

Unite said 618 jobs could be lost at the Bracknell hub, although the employees work at multiple locations; 483 will go at Warrington and 23 at Sheffield.

HP's statement said: "HP remains committed to supporting the employability of its employees through a number of internal initiatives, including re-skilling, redeployment and support to obtain alternative employment as appropriate."

The firm is under pressure amid a global decline in PC sales amid growing demand for laptops and greater tablet use.

In a mission statement on the company's website, chief executive Meg Whitman writes: "We are in a multi-year journey to turn HP around, and we have put in place a plan to restore HP to growth.

"We know where we need to go, and we're making progress.

"We continue to drive product innovation in our core markets, with a focus on cloud, security, and big data.

"We see big opportunities ahead, and we are well positioned to take advantage of these opportunities with our remarkable set of assets and strengths.

"We have the people, the plan, and the foundation in place to help us succeed on the next phase of the journey."