May 29, Hewlett-Packard said in Thursday (May 27) that HP plans to outsource enterprise storage and server production in Europe. HP's goal is to relocate its current production operations in Erskine, Germany and Scotland, to a partner in the Czech Republic sometime next year to optimize its cost structure. However, Hewlett-Packard spokesman Anette Nachbar said HP could not provide the name of the partner because HP is still negotiating with many of its production partners in the Czech Republic. In addition to shifting production jobs, HP plans to cut staff in Europe. After months of discussion with the staff, HP has submitted a restructuring plan to the European Factory Council (European works Council). The plan will cut 5700 people from 80,000 employees in Europe, the Middle East and Africa. HP spokesman Nachbar said that HP's layoffs in Europe will be phased in in two years, involving many countries in the region, all types of jobs and business units. HP has not yet decided on the exact number of redundancies in each country or sector. Nachbar said HP must first discuss the matter with its staff representatives before announcing more details in order to comply with local laws in some countries. These discussions may begin at the end of June. Detailed layoffs will be announced within the next few weeks. Hewlett-Packard said last week that HP would cut 6,000 employees in the coming year, accounting for about 2% of HP's global workforce. Author: Tianhong
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