HP employs nearly 1,000 people at its Erskine, Renfrewshire plant
Hundreds of Scottish jobs are under threat following an announcement by personal computing giant Hewlett Packard (HP) it plans to cut 27,000 jobs globally by the end of 2014.
California-based HP said the job cuts, representing eight per cent of its 350,000 global workforce, will reduce costs by $3.5 billion (£2.2 billion) a year.
HP said it would reinvest the savings in growth areas like cloud computing after suffering a huge slump in personal computer sales due to the consumer shift towards tablet computers.
The company reported a 31 per cent drop in second quarter profits to $1.6 billion (£.1.2 billion) on a three per cent fall in revenues.
In August 2011, HP announced plans to close down its computer business at Erskine, Renfrewshire, putting up to 1,200 jobs at risk.
HP said at the time the move was part of a wider global repositioning by the company to withdraw from manufacturing tablet computers and smartphones.
A spokesman for HP said today around 800 jobs have been cut at its Erskine plant in the past two years, but the company still employs “just shy of four figures” at the site.
The spokesman said no decision had been made as yet as to which areas of its global business would be affected in this latest round of job cuts.
HP said in a statement it expects “workforce reduction to impact just about every business and region.”
HP announced in August 2010 plans to create 700 new jobs at its Renfrewshire base by 2014 to create a new IT hub, which an HP spokesman said the company was still “actively recruiting” for.
Scottish Enterprise pledged £7 million in Regional Selective Assistance grants to the US computing giant in 2010 to help facilitate this new venture.
This followed a 2009 announcement by HP it was transferring its manufacturing operations from Erskine to the Czech Republic, which the Union Unite said would see around 700 jobs move in that transfer.
Unite accused HP in 2010 of taking advantage of the “public subsidy merry-go-round” in its decision to move jobs overseas but then using public subsidies to re-hire employees at Erskine.
HP said the new roles announced in 2010 the new jobs were in IT services as opposed to manufacturing roles, which had been moved.
HP's Renfrewshire base comprises IT service, call centre support and re-manufacturing.