HP workers brace for major job cuts

Trade unions estimate that 1,500 UK staff could be axed

HP is due to announce a restructure on 15 September following its takeover of EDS

Some 1,500 UK jobs could be cut when HP announces its expected restructuring next week, trade union Public and Commercial Services Union (PCSU) has warned.

"We are concerned that at least 10 per cent of HP's 15,000-strong workforce will be affected by this restructuring," said PCSU national officer Jim Hanson.

"The estimate is based on our knowledge of similar moves by large companies aiming to maximise profits."

The HP announcement is due on 15 September and follows its takeover of EDS.

Other concerns related to the cull include the management of EDS' public sector contracts, which include deals with the Department for Work and Pensions and the Ministry of Defence.

The vendor is also one of the shortlisted bidders for the National Identity Cards project.

"The acquisition of EDS by HP was announced over a month ago and there have not been any detailed discussions about the future of their various public sector contracts or any conditions whatsoever, which raises fears over job security and public accountability," said Hanson.

"Of course this [acquisition] makes sense in the IT world as HP wants to rival IBM, but what we are worried about is what is going to happen with government IT, as well as the people working on those projects, and taxpayers," he said.

Workers union Unite met with over 40 other European union representatives from nine countries in Brussels this week to discuss the impact of the restructuring on employment, and is dissatisfied about the lack of information provided by the companies.

"We are not against change, but will closely monitor the impact of any proposals announced by HP next week, and take all possible steps to safeguard the interests of the workforce," said Unite national officer Peter Skyte.

"Prior to its takeover by HP, EDS has placed a positive emphasis on reskilling and redeploying substantial numbers of people in restructurings within the company as an alternative to redundancy."

"We support this approach, and will oppose any attempt to return to the slash and burn approach favoured by IT companies in the past."