HP share price: US tech giant to axe 1100 UK jobs

on Dec 4, 2013
Updated: Oct 21, 2019
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iNVEZZ.com, Wednesday, December 4: Hewlett-Packard Co (NYSE:HPQ), the world’s largest maker of personal computers, plans to axe more than 1,100 jobs in the UK next year, the Unite union said earlier today. The move is part of a global downsizing for the US technology behemoth brought on by falling world demand for PCs. Hewlett-Packard UK issued its own statement following Unite’s release, in which it confirmed the number of cuts.

In today’s trading, HP shares were up 2.55 percent at $28.20 as of 14:35 UTC.
**Job cuts**
Unite said representatives had attended a meeting where managers outlined plans to create 1,124 redundancies at three UK sites. The union said that more than 600 jobs could be axed at HP’s Bracknell operation, nearly 500 at Warrington and 23 at Sheffield. The process will start early next year.

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In its statement, HP said that not all affected personnel would be let go, with some relocating to other positions within the UK operation.
Hewlett-Packard, said the statement, “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”.

Unite national officer Ian Tonks commented: “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.”
**Turnaround efforts**

The UK job cuts are part of a wider reorganisation effort at HP, designed to revive the fortunes of a PC-maker struggling to come to terms with a continuing slump in the PC market, as former users migrate to smartphones and tablets computers. The company said last year that it would cut 27,000 jobs worldwide by the end of 2014, representing about eight percent of its global workforce.

As part of its turnaround strategy, HP is also sharpening its focus on businesses with longer-term potential, such as enterprise services. Back in May, when HP first announced its downsizing plans, it said that global redundancies should save the company around £2.2 billion, money it planned to invest in growth areas such as cloud storage technology.

HP last week surprised investors by reporting better-than-expected financial results (HP share price soars as Q4 results beat estimates). Fourth-quarter revenues were well above analyst expectations at $29.1 billion, while non-GAAP net earnings were slightly ahead of forecasts.
**As of 14:57 UTC buy HP shares at $28.55**
**As of 14:57 UTC sell HP shares at $28.54**

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