The plan, which was presented to the German Supervisory Board, also proposes the closure of HP’s site in Rüsselsheim, Germany, by the end of October.
The detailed turnaround plan for HP Enterprise Services aims to improve the portfolio through innovation in the core and expanded offerings in higher-growth services, optimize the cost structure with a focus on account performance, strengthen accountability and empower account executives and improve operating excellence with tools, processes and a formalized operating cadence.
The upcoming closure of the Rüsselsheim site will cause the elimination of approximately 850 positions. The proposed closure was attributed 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. 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.
Mike Nefkens, executive vice president, HP Enterprise Services, said, “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. The changes we are announcing in Germany today are a necessary part of our commitment to deliver our long-term operating model.”