Management Toolkit

Reports: HP to cut 840 jobs in Scotland

David Meyer and Tom Espiner ZDNet.co.uk

Published: 28 May 2009 15:09 BST

HP is to lay off hundreds of workers at its manufacturing plant in Erskine, Scotland, according to reports.

On Thursday, Scotland's Daily Record reported that HP would move its manufacturing of servers and storage devices from Erskine to the Czech Republic between February and October next year, resulting in the loss of 70 permanent HP staff and 773 contractors.

HP would not comment on the story when contacted by ZDNet UK, other than to issue what a spokesperson called a "holding statement". In this statement, the company said that, if it did decide to make any changes or adjustments to its businesses, it would consult with its employees and their representatives before talking to any external parties.

ZDNet UK also queried the job cuts with HP's business-development manager for personal systems, Steve Gales, at a company event on Thursday. "We look at opportunities globally," he said. "We have to look to provide the best possible value to customers and that means optimising production."

The BBC has quoted local MP Jim Sheridan as saying the job cuts were "disgusting".

Sheridan commented: "These workers are being tossed aside after helping to make vast profits for Hewlett."

Earlier in May, HP reported a net profit of $1.7bn (£1.07bn) for the fiscal second quarter ending on 30 April. The company said, however, that it intended to lay off two percent of its workforce — around 6,400 people — in the face of the global economic slump.