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HP cuts not expected to hit Ireland

HP - Automation move to affect 9,000 jobs
HP - Automation move to affect 9,000 jobs

Computer maker Hewlett-Packard is to cut 9,000 jobs worldwide in the next few years as it makes a $1 billion investment in fully automated data centres.

The US IT giant did not give a specific timeframe for the shift to fully automated data centres nor say where the jobs would go. HP has more than 300,000 employees in around 170 countries.

There are no HP data centres in Ireland. As a result it is thought unlikely that today's move will have a significant impact on the Irish business. HP employs 4,000 people in Leixlip, Dublin, Galway and Belfast. Earlier this year, it said it was creating 60 jobs at its facility in Belfield in Dublin.

'As a result of productivity gains and automation, HP expects to eliminate roughly 9,000 positions over a multi-year period to reinvest for further growth and to increase shareholder value,' it said in a statement. But it will also add 6,000 new positions over the same period as it invests in more advanced data centres and expands its global operations.

It said the technology upgrade, when completed, would result in savings of around $1 billion a year.

Last month the company posted better than expected quarterly results as technology spending picked up across all markets. HP reported a net profit of $2.2 billion, up from $1.7 billion a year earlier.