OEM’s Rüsselsheim site will close by end of October, resulting in hundreds of job losses.
HP has announced that it will close its site in Rüsselsheim, Germany by the end of October due to “efficiency gains, local partner outsourcing and consolidation with other HP global service delivery hubs”, resulting in 850 job cuts.
The OEM states that employees affected by the closure will have the opportunity to apply for positions at other HP sites, with the site’s 250 remaining employees being able to transfer to HP partners or clients.
The site closure comes as HP announces plans to restructure its Enterprise Services business in Germany, with the planned changes expected to affect approximately 1,100 positions in the country and consisting of “four strategic pillars”: improving the portfolio through innovation in cloud and information management services; strengthening accountability and empowering account executives; optimising the cost structure with a focus on account performance; and improving operating excellence with tools, processes and a formalized operating cadence.
Commenting on the changes, Mike Nefkens, Executive Vice President of 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.”
The restructuring plans in Germany are part of HP’s overall restructuring efforts announced last year which will see the company cutting 29,000 jobs by 2014 in order to cut costs and “simplify business processes”.