Hewlett-Packard cuts likely to hit Des Moines operations
By Kent Darr
Hewlett-Packard Co.’s plans to slash its work force by 8 percent will affect every business division and every region where the global company operates, a spokesman said today, meaning that some of the nearly 600 jobs at a Des Moines logistics center could be in jeopardy.
“We expect workforce reductions in about every business and region,” spokesman Michael Tucker told the Business Record.
Hewlett-Packard leases more than 700,000 square feet of warehouse and distribution space at Airport Business Park near Army Post Road and Southwest 34th St. It signed a 10-year lease that took effect in February for its most recent expansion, a 300,000-square-foot logistics center, in the business park.
In its application for state economic development funds for the center, Hewlett-Packard said it planned to employ 150 people there, adding to the 440 people working at an adjacent building.
The company received $600,000 in financial assistance in January 2011 for what was expected at the time to be a $17 million expansion. Hewlett-Packard leases the building from a Chicago real estate company.
Hewlett-Packard announced Wednesday that it planned to cut 27,000 jobs, or 8 percent of its work force, to reduce costs and help the company contend with ebbing demand for computers and computer services.
The company will offer early retirements and plans to reduce its work force over two years in a move that it said could save up to $3.5 billion. It hopes to achieve additional savings through supply chain optimization and other operational changes.
At the end of its fiscal quarter on April 30, Hewlett-Packard reported $30.7 billion in revenue, a 3 percent drop a year earlier.
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