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HP Announces Restructuring Plan for Enterprise Services in Germany

Plan Is Part of the Previously Announced Multiyear Restructuring

BOBLINGEN, GERMANY -- (Marketwire) -- 02/01/13 -- 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.

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.

© 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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