HP slashes over 3,000 UK jobs

Union voices fears over public sector IT accountability

Angelica Mari, Computing 09 Oct 2008

HP is to shed 3,378 employees as a consequence of its takeover of EDS last May. The figure is more than double the estimate made by trade union Public and Commercial Services Union (PCSU) last month.

At the time, PCSU predicted that at least 10 per cent of HP's 15,000-strong workforce would be affected by the post-merger restructuring.

There are also fears concerning EDS' ability to continue delivering work for its public sector IT contracts, which include deals with the Department for Work and Pensions, Transport for London and the Ministry of Defence.

Ministry of Defence personnel and Home Office and prison services could be hit by the reduction in staff over the next two years. The union warned that it would "vigorously oppose" any compulsory redundancies by HP.

"This announcement creates further uncertainty with little or no detail of where the axe will fall, and comes as a huge blow to the workforce in a time of economic turmoil," said PCSU general secretary Mark Serwotka.

"Our concerns about government IT contracts in the Ministry of Defence and Department for Work and Pensions will not be alleviated by this announcement.

"It's not just jobs that are at risk, but the delivery of public services that rely on IT services provided by the former EDS. We will be pressing management for more detail and assurances on compulsory redundancies and service levels."

HP said in a statement that it will attempt to redeploy affected employees but did not disclose the exact areas affected by the job cuts.

The vendor's staff review in the EMEA region alone is expected to affect around 9,300 staff over a two-year period, with roughly half of these positions to be replaced with a "workforce that has the right blend of services and delivery capabilities".

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