Hewlett-Packard has announced plans to close its site in Ruesselsheim, Germany. The closure will be completed by the end of October and will result in 850 fired employees. The layoffs account for 8.5 percent of HP’s staff in the country
Mike Nefkens, executive vice president of H-P Enterprise Services, tells Fox Business:
“The changes we are announcing in Germany today are a necessary part of our commitment to deliver our long-term operating model.”
HP has been under a major restructuring effort for more than a year. The company has witnessed growing competition in the personal PC market as tablet and smartphone devices continue to cannibalize the traditional consumer products market.
HP has also witnessed decreased interest in its printer division as mobile devices remove the need for large reams of paper. The company’s problems are compounded by falling prices in the already margin thin laptop, desktop, and server sectors.
In order to restructure, Hewlett Packard announced that it would fold its printing business into its PC personal-systems group. The company announced plans to fire 27,000 workers in order to streamline its processes while cutting costs.
HP’s Germany layoffs will allow the company to restructure its HP enterprise services division.
Approximately 10,000 HP workers will remain in their positions throughout the rest of Germany.
Hewlett Packard plans to offer 250 employees the chance to transfer to other divisions within its organization.
HP stock is down 42 percent on the year but was up 15 cents to $16.66 after news of the layoffs.
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