HP Announces Restructuring Plan for Enterprise Services in Germany
Plan Is Part of the Previously Announced Multiyear Restructuring
BOBLINGEN, GERMANY--(Marketwire - Feb 1, 2013) - HP (NYSE: HPQ) today announced plans to restructure its Enterprise Services business in Germany.
The plan is part of HP's global multiyear restructuring plan that was announced on May 23, 2012, and further detailed at its Securities Analyst Meeting on Oct. 3, 2012.
Under the proposal presented today to the German Supervisory Board, the planned changes in Germany will affect approximately 1,100 positions. The company will also close its site in Rüsselsheim, Germany, by the end of October.
"As we described during our Securities Analyst Meeting in October, HP Enterprise Services has an aggressive plan to optimize its portfolio and its sales and delivery model, and to improve its cost structure, resource management and operations," said Mike Nefkens, executive vice president, HP Enterprise Services. "The changes we are announcing in Germany today are a necessary part of our commitment to deliver our long-term operating model."
The detailed turnaround plan for HP Enterprise Services has four strategic pillars:
- Improving the portfolio through innovation in the core and expanded offerings in higher-growth services such as cloud and information management.
- Strengthening accountability and empowering account executives.
- Optimizing the cost structure with a focus on account performance.
- Improving operating excellence with tools, processes and a formalized operating cadence.
HP Enterprise Services restructuring in Germany
As part of the upcoming closure of the Rüsselsheim site, approximately 850 positions will be eliminated due to efficiency gains, local partner outsourcing and consolidation with other HP global service delivery hubs. Employees affected by the changes will have the opportunity to apply for open positions at other HP sites.
The approximately 250 employees that remain at the site will have the opportunity to transfer to HP partners or clients.
"HP is investing in a portfolio of services to help our clients improve their business performance on their journey to the cloud," said Volker Smid, managing director, HP Germany. "At HP, we will continue to invest in a highly skilled workforce, in innovation for the German industry and in the cooperation with our partners to help our clients solve their IT challenges and stay competitive while expanding their business on a global scale."
The HP Enterprise Services restructuring will not impact any of HP's other major sites in Germany, and the company will continue to employ approximately 10,000 people in the country.
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