HP Cuts 500 Positions in Arkansas

By Narayan Ammachchi

Silicon Valley technology giant HP is reportedly laying off about 500 workers at its customer service center in Conway, Arkansas, three years after launching the facility which had been a boost to the local business community.

HP will not close down the facility but will phase off several employees in the months to come. HP has said that the layoffs were part of its efforts to streamline operations and cut cost.

The Silicon Valley company has resorted to cost cutting as the decreasing demand for PC has undermined its finances in the past few years.

Analysts warn that the Palo Alto, Calif.-based company’s restructuring plan, announced in May 2012, may lead to the dismissal of thousands of its employees worldwide. HP is relocating a call center in Costa Rica to the Indian city of Bangalore, eliminating more than 200 employees.

The facility in Conway, located on 180 acres in Meadows Technology Park, employees more than 1000 people in technical and call center positions.

The company would, however, provide severance packages to those it is removing and help them find employment elsewhere, says a local newspaper Pine Bluff Commercial quoting the company’s Media Relations Officer Sarah Pompei as saying.

“We reaffirm our commitment to providing innovative technology solutions to every community we reach,” she said. “As well, HP will be taking steps to help our affected employees during this transition.”

HP has reiterated that its restructuring plan is designed to simplify business processes, advance innovation and deliver better results for customers.