The Irish Bank Officials' Association (IBOA) is seeking an "urgent meeting" with managment at computer manufacturer Hewlett Packard, which employs about 4,000 people in Ireland, following its announcement today that it is to cut some 24,600 jobs worldwide.
In a statement on its website this morning, HP said it would implement a restructuring programme for its Electronic Data Systems (EDS) arm that would "better align the company's overall structure and efficiency".
The restructuring program will take place over three years and includes a workforce reduction that will "streamline the combined company’s services businesses", the company said.
A spokeswoman for HP in Ireland told The Irish Times she had no details about whether jobs in Ireland would be affected by the cuts, saying there was no breakdown of job losses on a country by country basis.
“We have no further details at present. We will be communicating information as we get it,” she said.
The IBOA which has members in both HP and EDS in Ireland said it would seek assurances from the company about the future job security of its Irish workforce.
“Both HP and EDS in Ireland have been very profitable thanks to the highly committed contribution of their employees,” said IBOA General Secretary, Larry Broderick.
“These workers are naturally concerned about their future in light of the intense media speculation that has followed the job cuts announcement by HP’s President and Chief Executive, Mark Hurd.”
“While it has been suggested that a substantial proportion of the job losses will occur in the US, we are looking for clear assurances about the security of our members’ jobs in Ireland.
“If it transpires that some job reductions are planned here, IBOA will be seeking an undertaking from management that any redundancies will be implemented on a voluntary basis with properly agreed severance terms for any staff leaving the company and with a further negotiated agreement on enhanced terms and conditions of employment for the remaining workforce.
HP has said the workforce reduction plans would vary by country, based on local legal requirements and consultation with works councils and employee representatives, as appropriate.
"Approximately 7.5 per cent of the combined company’s workforce, or about 24,600 employees, will be affected over the course of the program, with nearly half of the reductions occurring in the United States. HP will provide employees affected by this restructuring program with severance packages, counseling and job placement services."
"HP expects to replace roughly half of these positions over the next three years to create a global workforce that has the right blend of services delivery capabilities to address the diversity of its markets and customers worldwide."
The company said the restructuring programme would result in annual cost savings of about $1.8 billion.
HP will record a charge of $1.7 billion in the fourth quarter of fiscal 2008 relating to the restructuring program, $1.4 billion of which will be recorded as goodwill and $0.3 billion of which will be recorded as a restructuring charge.
"In addition to making changes to its global workforce to better serve its services customers, HP has identified synergies in corporate overhead functions, such as real estate, IT and procurement," the company said.
Hewlett Packard and EDS have a combined 320,000 employees. Chief executive Mark Hurd paid $13.2 billion for EDS to more than double revenue from services, such as managing computer networks and data centers for corporate customers.
Combined, the companies' service units had more than $38 billion in sales last year. The acquisition catapulted HP to second in that market behind IBM.
Additional reporting: Bloomberg