HP axes Scottish production plant

 

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By Stuart Turton

Posted on 29 May 2009 at 08:54

HP will axe over 700 jobs in Scotland, as it aims to lower costs by shifting production to the Czech Republic.

The Erskine site in Scotland manufactures storage devices and services. HP says operations will begin closing down between February and October next year, with the site expected to close completely in 2010.

"We can confirm that the number of jobs affected will be 710," says HP. "Eighty are permanent HP employees and the remaining are temporary workers and contractors."

"In keeping with local law and established practice, HP will consult with employee representatives in the countries affected by the proposal on the conditions for the implementation of the restructuring measures," the company concludes.

The losses in Scotland come as HP looks to shed 5,700 employees across Europe, Middle East and Africa over the next two years.

The cuts follows 6,400 job cuts earlier this month, after the company announced revenues had fallen 19% from 2008. The company made a profit of $1.72 billon on sales of $27.4bn in the quarter ended April.