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Region's steady growth may help HP workers keep jobs

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With steady growth coming from its Asia-Pacific markets, Hewlett-Packard's operations in the region are expected to avoid the worst of the company's new 18-month campaign to cut jobs worldwide.

Layoff fears at Silicon Valley-based HP appear to have escalated, after months of speculation, when chief executive and president Mark Hurd on Tuesday unveiled a retrenchment goal of 14,500 full-time staff over the next six quarters.

'Headcount-reduction plans will vary by country, based on local legal requirements and consultation with works councils and employee representatives, as appropriate,' HP said.

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Analysts said HP's vow to 'carefully target staff reductions' could mean less anxiety for the firm's Asia-Pacific workforce of 36,000.

'It is obvious that every one of HP's offices will be affected in some way but Asia accounts for nowhere near the number of employees HP has in the United States or Europe,' Gartner research director Martin Gilliland said. 'It is likely that the region will be the one of the least affected geographical markets.'

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Up to 2,000 positions are expected to be eliminated in Germany, according to a report from trade paper Handelsblatt in Dusseldorf.

Senior executives at HP's Asia-Pacific headquarters in Singapore declined to comment. HP has about 151,000 workers worldwide.

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