Hewlett-Packard to axe 133 Irish jobs

LONG-TERM fears for multinational job security strengthened last night with the announcement by computer giant Hewlett-Packard (HP) that it expects to cut up to 133 jobs at its Irish operations over the next two years.

The news was not a huge surprise as HP said last month it was to cut nearly 25,000 jobs worldwide over the next three years — mainly as a result of merging its recently acquired business services outsourcing company, EDS, into the greater workings of the group.

HP employs around 4,000 people in manufacturing facilities in Leixlip and Dublin and administration offices in Galway and Belfast. EDS’ Irish operations currently employ around 400 people.

Yesterday, HP said its Europe, Middle East and Africa (EMEA) arm would see 9,300 casualties in the next two years.

In a statement, the company said: “Over the coming days, there will be meetings with both HP and EDS employee representatives to share information on the proposed integration plan for Ireland.

“HP expects that the number of positions impacted in Ireland over the two year timeframe will be 133. HP will make every effort where possible to re-deploy impacted individuals.”

While this move will undoubtedly raise fears of further cuts in the multinational sector, commentators have been eager to put a positive spin on things.

National Irish Bank chief economist Dr Ronnie O’Toole said: “We’re seeing a relatively high churn rate of jobs in the multinational sector in Ireland and while there seems to be a steady enough stream of jobs going — which is of obvious concern — there is also a good in-flow of investment and jobs.

“The indications are generally good for Ireland and we don’t foresee any huge number of investment projects here being downgraded. In its most recent outlook, IDA Ireland said that the level of foreign direct investment activity would be up for 2008, on a whole, on last year — which itself was a very good year.”

The Government this week denied that it has been informed by another computer maker, Dell, that it intends to leave Ireland with the loss of more than 4,000 jobs.