HP says Irish job cuts are likely

Hewlett-Packard expects that Irish staff will be among the 27,000 jobs to be shed as part of a three-year global restructuring plan.

HP stated that the changes to its global workforce will vary by country, based on local legal requirements and consultations with employee works councils and other employee representatives, as appropriate. In total, 8% of the global workforce will lose their jobs by 2014.

A company spokesperson said: “The restructuring is a multi-year plan spread over three years and HP have not yet announced specific plans with regards to specific locations. We do expect the workforce reduction to impact just about every business and region.”

Hewlett Packard has been operating in Ireland since 1995 and employs 4,000 people here. Its main operation is a manufacturing plant at Leixlip in Co Kildare, where cartridges for inkjet printers are made.

The company also has a software and localisation centre in Galway.

HP president and chief executive, Meg Whitman, said: “While some of these actions are difficult... We are setting HP on a path to extend our global leadership and deliver the greatest value to customers and shareholders.”

HP said that as a result of this restructuring, it expects to record a pre-tax charge of approximately $1.7bn (€1.35bn) during the 2012 fiscal year, which will be included in its GAAP financial results for that period.

Through fiscal 2014, HP expects to record additional pre-tax charges approximating $1.8bn (€1.45bn) that will be included in its GAAP financial results for the appropriate periods.

The move came as the Palo Alto, California-based firm reported a 31% drop in profits in its second fiscal quarter to $1.6bn. Revenue in the period fell 3% from a year ago to $30.7bn.

The results excluding special items amounted to 98 cents a share, better than expected. And revenues were above most Wall Street estimates as well.

In after-hours trade, HP shares jumped 5.69% to $22.28.


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