Manufacturing & Supply Chain

Worrying reports have emerged for the tech sector as Hewlett Packard has announced plans to cut its global workforce by 3,000 to 4,000 over the next three years.

The company are a major employer in Ireland, with around 4,000 employees around the country in manufacturing, R&D, customer software support, marketing, sales and services. Its main Irish operations are based in Leixlip, and HP also has sites in Galway, Belfast and Dublin.

The job cuts come as part of a global restructuring plan that HP will believe will generate gross annual savings of $200-$300 million from 2020.

As of yet, there is no indication if any Irish positions will be affected by the restructuring. Globally, the company boasts over 300,000 employees.

While annual savings will be substantial, the restructuring will cost the company between $350-$500 million in charges, including costs from shrinking its workforce.

In recent years, HP has announced significant job cuts worldwide, but its Irish operations have yet to take a substantial hit.

CEO Dion Weisler says: “I’m proud of the progress we have made in our first year as the new HP. Our focus is clear, our execution is solid, and we are positioned well for the next step of the journey.”

In 2017, the company estimates earnings per share of $1.47 to $1.57, and free cash flow of $2.3 to $2.6 billion.