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Friday, 5 July, 2002, 10:25 GMT 11:25 UK
Hewlett-Packard cuts UK workforce
Compaq/ HP graphic
The HP/Compaq merger has caused shockwaves for operations worldwide
Computer maker Hewlett-Packard has said it is to cut 1,580 jobs in the UK.

The move follows the company's merger with rival Compaq earlier this year.

Earlier this week HP, which is based in the US, said it planned to cut nearly 6,000 jobs in Europe, as a result of the merger and outsourcing of some manufacturing.

The UK cutbacks include the loss of 630 posts at the Compaq plant at Erskine in Scotland.

'Devastating news'

The Erskine plant will lose 450 permanent positions and 180 part-time staff, leaving around 900 full-time workers.

The news was greeted with dismay by unions.

"This is devastating news for the workforce and comes as a major blow on the eve of the holiday period," said Danny Carrigan, Scottish regional secretary of the Amicus union.

"This is another nail in the coffin of Silicon Glen and is bad news for the Scottish economy."

About 950 other jobs are to go at other sites in the UK, but the company said no decision had been made yet on where the cuts would fall.

HP said it regretted the job cuts but said action was "necessary to build a profitable and sustainable business in the long term."

The firm currently employs about 7,600 people in the UK.

Worldwide cuts

Last month HP said it planned to cut 15,000 jobs worldwide within 18 months as part of a cost-cutting measure following the merger with Compaq.

The tie-up between the two computer giants was agreed earlier this year, despite opposition from several key HP shareholders.

Opponents argued to deal would weaken the HP brand and printer business, and lumber it with an underperforming PC unit.

See also:

05 Jul 02 | Scotland
04 Jul 02 | Scotland
04 Jun 02 | Business
03 May 02 | Business
20 Mar 02 | Business
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