ICT Ireland, the technology division of IBEC, has said that the merger of Compaq and Hewlett-Packard may not mean job cuts in Ireland. It said that the merger could act as a spur to growth in the technology sector.
Brendan Butler, director of ICT Ireland, said that HP and Compaq have made significant efficiencies in their Irish operations over the last six months without any major job losses. He also said that their Irish operations do not overlap to any significant extent.
Mr Butler hoped the merger would spur the technology sector forward on its "inevitable path of growth". Recent estimates by International Data Corporation suggest PC sector shipments will grow by 55% by 2005. ICT Ireland said that these projections were good news for Compaq with its high concentration on the PC market.
It was feared that more jobs in the computer industry would be on the line because of the merger. Worldwide, they employ 160,000 people. HP is to purchase its rival for $25 billion in stock. The new company will drop 15,000 jobs worldwide.
