Despite job cuts being planned earlier in the year by Hewlett-Packard in the United Kingdom, labor representatives express deep resentment of worker elimination and jobs moving to other locations in the world while the company continues to grow revenue and profit.
employees in the United Kingdom are railing from recent
layoffs that eliminated 1,300 employees. The latest workforce reduction
announcement comes on top of 900 HP worker job cuts in the region. The union
representing U.K.-based workers, Unite, had disparaging remarks for the recent
spat of downsizing in the region.
"Despite significant profits, HP appears
hell-bent on continuing to butcher its highly skilled U.K. workforce," said Unite
official Peter Skyte in an Oct. 11 statement. "It is increasingly
difficult for HP employees in the U.K. to plan for their
futures when the threat of redundancy is continually hanging over their heads.
Morale is at an all-time low."
HP posted a revenue increase of 11.4 percent and
an operating profit increase of 14 percent at $3.4 billion in its last earnings
report for the third quarter.
"The broad-based strength of HP's Q3
performance further demonstrates the power of our strategy and the discipline
of our execution," said Cathie Lesjak, HP CFO and
interim CEO in an Aug. 19 statement. "We raised our
full-year outlook and are continuing to build momentum in driving out costs,
investing for profitable growth and capitalizing on HP's competitive advantages
in the marketplace."
The union--which represents more than 1.5 million
workers in Britain and Ireland--is complaining these
job cuts are in direct opposition of the U.K. government's contention
that high technology jobs will fuel the job growth in the near future. The
union claims there have been nearly 9,000 job cuts from HP in the U.K. in the last two years.
"On the evidence of these cuts, the U.K. government's belief
that the high tech private sector will be the motor for growth and new jobs is
largely a mirage," said Skyte. "Lax employment protection in the U.K.
compared to other European countries means that the U.K. is bearing the brunt of
cuts, as it's quicker and cheaper to sack U.K. people and export their jobs
The union is also citing that many jobs for HP
have moved to Asia and other developing countries and that the work stress has
increased dramatically for workers inheriting HP work from the U.K.
"Our sister union in India, Unites, is
reporting that IT employees in India are complaining about the stress caused by
tremendous pressure to live up to unreasonable targets and deadlines," said
In response to Unite's complaints, HP told Network
World the job cuts were part of a planned workforce reduction effort announced
in June to help streamline and boost the company's enterprise business.