Hewlett-Packard Decides to Shut Down its German Site

February 20, 2013 No Comments

Early this month, Hewlett-Packard finally announced its decision to shut down its German site in Rüsselsheim thus laying off approximately 850 positions in the same process. According to HP official press release, the said decision was a part of their restructuring plan in their Enterprise Services which was first announced to the public on May 23, 2012, and was further detailed during the Securities Analyst Meeting on October 3, 2012.

The restructuring plan for the Enterprise Service as stated by the company itself revolves around four strategic pillars, which are mainly the following:

  • 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.

“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.”

“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.”

Further though, HP’s Enterprise Services Restructuring Plan will not affect any of the other sites in Germany and that the company will continue to employ 10,000 people in the country.

Sources: HP Press Release

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