Friday 23 June 2017

Fears for thousands of Irish jobs as HP looks to cut up to 4,000 roles over next three years

HP has been in Ireland for the past 45 years with the firm investing over $1bn in Ireland over the past 20 years.
HP has been in Ireland for the past 45 years with the firm investing over $1bn in Ireland over the past 20 years.
Michael Cogley

Michael Cogley

Computing giant HP Inc is looking to cut up to 4,000 jobs from its global workforce over the next three years, leaving Irish workers uncertain over their future.

It is understood the company employs around 4,000 staff here at is base in Leixlip. The new wave of cuts comes after the company moved to reduce its staff count by between 25,000 and 30,000 in its enterprise products due to falling demand.

The staff here work in manufacturing, R&D, customer support, and marketing.

HP has been contacted for comment by Independent.ie.

The additional jobs cuts come as the maker of printers and personal computers continues to struggle with a subdued market, sending its shares down 1.3pc in extended trading.

HP, which houses the hardware business of former Hewlett-Packard, said in February it would accelerate its restructuring programme and slash around 3,000 jobs by the end of fiscal 2016.

HP Chief Executive Dion Weisler said the market continued to be volatile, facing pressures and uncertainties.

"Our core markets are challenged and macro economic conditions are in flux right now," Weisler said.

HP expects adjusted profit for fiscal 2017 to be $1.55-$1.65 per share. Analysts on average had expected $1.61 per share, according to Thomson Reuters I/B/E/S.

Raising its quarterly dividend by 7pc, HP also said it would increase its share buyback programme by $3bn.

The company expects restructuring and other charges of $350m to $500m and the move is expected to generate gross annual run rate savings of $200m to $300m beginning in fiscal 2020, HP said.

According to research firm Gartner, worldwide PC shipments in Q3 fell 5.7pc, eighth consecutive quarter of PC shipment decline. Gartner also said that this is longest duration of decline in the history of the PC industry.

HP shares have gained 28pc this year up to Thursday's close.

(Additional reporting from Reuters)

Irish Independent

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