850 Jobs Set To Go At HP UK Plant

In yet another major setback to manufacturing jobs in UK, the computer giant HP has announced to axe around 850 jobs at its manufacturing plant in Erskine, Renfrewshire in Scotland, according to reports.

According to Scotland’s Daily Record, the computer maker would relocate its manufacturing of storage devices and servers from Erskine to the Czech Republic next year, affecting as many as 70 permanent staffers along with 773 contractors.

The new move is in line with the company’s statement last week, in which the company quoted that it was looking forward to reduce the size of its global workforce by 2 percent, or around 6,400 jobs.

However, HP had already warned about more job cuts when it announced its financial results for the second quarter last week. For the quarter that ended on 30 April 2009, the company posted a considerable drop of 28 percent in its sales of servers and storage devices; however, the company posted net profit of $1.7 billion on overall sales of $27.4 billion.

The aforementioned plant was originally opened in 1987 by Compaq, which was later acquired by HP, and is currently holding a staff of around 1,300 people.

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Our Comments

There's not much that can be done to prevent further job losses from other computer manufacturers in the current financial situation. HP, like any other company, is looking to cut costs and will be moving production to somewhere cheaper.

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