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Home >> Business
UPDATED: 11:08, September 23, 2005
French PM wants HP to limit job cuts scope in France
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French Prime Minister Dominique de Villepin said he wants the American Hewlett-Packard company to limit the scope of its job cuts plan in France.

"We hope that Hewlett-Packard will reduce its job cut plans," since the company "earns a lot of money," Villepin said in an interview with French daily Les Echos to be published on Friday.

He said it would be "normal" for the company to redound on development operations in France. "Those who receive public aid must respect the obligations that go with it."

HP announced on Sept. 12 that it would cut 1,240 jobs of the 4,800 workforce in France by 2008 but would try to do it through voluntary layoff to avoid the costs of direct redundancies.

The prime minister said the French government will attempt to find replacement jobs for the employees affected by the job cuts plan, adding that Paris will keep its public budget deficit at 3 percent of the GDP this year, despite soaring oil prices.

"With a barrel of oil now costing close to 70 US dollars, it is normal that we adapt our budget policies for growth and employment, " Villepin said.

"That does not in any way put into question our commitments with regards to our partners; we will remain on course for 3 percent," the ceiling stipulated by the European Stability Pact for the euro area.

Villepin also said he has asked Finance Minister Thierry Breton to convoke a meeting with executives of France's mobile telecom operators to lower calling costs for consumers.

"Look at mobile telecoms: it is an expenditure weighing more and more in household budget," he said. "I have asked Thierry Breton to meet the operators quickly to find appropriate solutions."

Source: Xinhua


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