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HP SA unsure on EMEA transformation

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 03 Jun 2009

Hewlett-Packard (HP) SA will know in a few weeks how a planned business transformation in the EMEA region will affect it, says the company.

More than 5 700 EMEA positions are expected to be affected by HP's planned workforce reduction, over the next two years. At the end of April, the company had more than 80 000 employees in EMEA.

An HP statement says a proposed restructuring plan for the region was submitted to its European works council at the end of last month. The plan details the regional impact of HP's ongoing global business transformation. HP says it continuously tries to optimise its operations and cost structure.

HP says part of the job cuts are related to its global job cut programme, which will see more than 6 400 staff being axed, and some stem from a drop in demand for new computing products.

HP SA spokesperson Hedy Gorton says the company has yet to be informed as to how the restructuring will affect the local arm.

The statement adds that a breakdown of the affected positions in businesses and functions on country level will be evaluated during the coming weeks.

HP says it will also consult with employee representatives, starting from the second half of June, in the countries affected by the proposal, on the conditions for the implementation of the restructuring measures.

In September last year, HP cut more than 24 000 jobs worldwide, 9 300 of them from EMEA, following its $13.9 billion (R110.9 billion) takeover of EDS in August 2008. The IT outsourcing company is now part of HP's Technology Services Group.

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