Global technology giant Hewlett-Packard is closing down their facility in Leixlip, Ireland. The announcement hints at the company’s shift from conventional technology to the 3D printing market.

Last year, Hewlett-Packard made their highly anticipated entrance into the 3D printing market with the HP Multi Jet Fusion 3D printer. The global tech firm’s innovative voxel-based printing system has won the hearts of the many in the industry. But the celebration hasn’t been without consequences.

On Wednesday, HP announced that they would be shutting down one of their operations in Ireland. The decision will involve cutting nearly 500 jobs from the Leixlip site over the next 12 months. The company added that it would keep a small sales team at the location to maintain a local presence.

The Leixlip facility first opened 22 years ago. Some of those being laid off have been with HP since the very start. The Leixlip facility is primarily used to manufacture inkjet printer cartridges, a sector that HP has been looking to thin out.

The company was quick to claim that the closure was unrelated to any particular performance issues.

“This decision is not a reflection on our Ireland employees or on the site’s performance. Ireland will remain a key market for HP, where we will maintain the sales operations for our printing and personal systems business,” the company said in a statement.

Out With the Old, In With the New

While the news of layoffs in Ireland is certainly unfortunate news, it’s not exactly unexpected. Back in October 2016, HP announced plans to cut 3,000 to 4,000 jobs over the next three years. The company claims that the layoffs will save them between $200 million and $300 million per year.

This strategy coincides with HP’s increasing investment in 3D printing technology, proving the company’s shift from 2D printing to additive manufacturing. In 2015, HP announced that it was splitting their business operations in two, Hewlett Packard Enterprises and HP Inc.

Hewlett Packard Enterprises focuses on new technologies like cloud computing software, while HP Inc oversees development of the Multi Jet Fusion 3D Printers. There’s also a Hewlett Packard Enterprise center located at the Leixlip site, but it was unaffected by the cuts.

HP is confident with the new strategy, but the difficulty in implementing it has also been acknowledged. HP Inc’s general manager Maurice O’Connell labeled the closure of the Leixlip facility as “a sad day for employees.”

Unfortunately, it’s unlikely to be the last “sad day” for workers in HP’s 2D inkjet printing sector. But with the bad news comes the opportunity for the company to focus on expanding their 3D printing sector. By implementing a strategy of rigorous cutbacks, HP is putting even more pressure on itself to get their attempt a 3D printing right.

proto labs
HP Jet Fusion 3D Printing Solution

Editor’s note 2/10: In an earlier version of the article, Hewlett Packard Enterprises was attributed as the division focused on the 3D printing technology. It is HP Inc that is responsible for developing this technology. The error has been amended above. 

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License: The text of "HP to Shutdown Operation in Ireland, Nearly 500 Employees Face Layoffs" by All3DP is licensed under a Creative Commons Attribution 4.0 International License.

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