Friday, February 15, 2013

Hewlett Packard's Plan to Shut its German Site

On February 01, Hewlett Packard announced one of its plan involved in its Enterprise Services Restructuring Plan this year and that is to shut down its German site. The said restructuring plan was first announced on May 23, 2013, and was further talked into details on October 3, 2013 in HP's Securities Analyst Meeting.

“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.”

According to its official press release: "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."

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 Announces Restructuring Plan for Enterprise Services in Germany, Hewlett-Packard Press Release, February 01, 2013

“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.”

Sources: HP News

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