HP slashes jobs in printing group

MAKER OF EXPENSIVE printer ink, HP is to hand some workers in its lucrative printer division their P45s.

According to an internal memo, the division, which is highly profitable, will see job cuts as the printing and imaging group is merged from five to three business units.

Those responsible for ink jet and web servers for SMEs will combine its laser jet and enterprise staff catering to corporate customers.

According to the memo, the reorganisation will take effect on August 1 and will enable HP to "reduce complexity and eliminate duplication".

So far HP is not saying how many people will be laid off.

Many observers are surprised because the printing and imaging group has traditionally been HP's most profitable.

However its operating profit improved only six per cent compared to last year, a pace lagging other divisions HP has already reorganised. µ

L'Inq
AP