HP Announces Restructuring Plan for Enterprise Services in Germany

Fri Feb 1, 2013 10:27am EST

* Reuters is not responsible for the content in this press release.

  BOBLINGEN, GERMANY, Feb 01 (Marketwire) -- 
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 Ruesselsheim, Germany, by the end of

    "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

    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
--  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 Ruesselsheim 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.

    About HP
 HP creates new possibilities for technology to have a
meaningful impact on people, businesses, governments and society. The
world's largest technology company, HP brings together a portfolio that
spans printing, personal computing, software, services and IT
infrastructure to solve customer problems. More information about HP is
available at http://www.hp.com.

    This news release contains forward-looking statements that involve risks,
uncertainties and assumptions. If such risks or uncertainties materialize
or such assumptions prove incorrect, the results of HP and its
consolidated subsidiaries could differ materially from those expressed or
implied by such forward-looking statements and assumptions. All
statements other than statements of historical fact are statements that
could be deemed forward-looking statements, including but not limited to
statements of the plans, strategies and objectives of management for
future operations; any statements concerning expected development,
performance, market share or competitive performance relating to products
and services; any statements regarding anticipated operational and
financial results; any statements of expectation or belief; and any
statements of assumptions underlying any of the foregoing. Risks,
uncertainties and assumptions include macroeconomic and geopolitical
trends and events; the competitive pressures faced by HP's businesses;
the development and transition of new products and services and the
enhancement of existing products and services to meet customer needs and
respond to emerging technological trends; the execution and performance
of contracts by HP and its customers, suppliers and partners; the
protection of HP's intellectual property assets, including intellectual
property licensed from third parties; integration and other risks
associated with business combination and investment transactions; the
hiring and retention of key employees; assumptions related to pension and
other post-retirement costs and retirement programs; the execution,
timing and results of restructuring plans, including estimates and
assumptions related to the cost and the anticipated benefits of
implementing those plans; the resolution of pending investigations,
claims and disputes; and other risks that are described in HP's filings
with the Securities and Exchange Commission, including HP's Annual Report
on Form 10-K for the fiscal year ended October 31, 2012. HP assumes no
obligation and does not intend to update these forward-looking statements.

    Copyright 2013 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. The only warranties
for HP products and services are set forth in the express warranty
statements accompanying such products and services. Nothing herein should
be construed as constituting an additional warranty. HP shall not be
liable for technical or editorial errors or omissions contained herein.


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