HP Issues Massive Restructuring Plan that Includes Huge Layoffs
When 30-year HP veteran Enrique Lores – currently president, imaging, printing and solutions – becomes president and CEO at the company on Nov. 1, he’ll be challenged to drive the struggling business through a major restructuring with a workforce reduced by up to 9,000 employees globally — or about 16%.
The vendor announced its fiscal 2020 financial outlook and restructuring plan, yesterday.
“We are talking bold and decisive actions as we embark on our next chapter,” said Lores, who will replace outgoing CEO Dion Weisler. “We see significant opportunities to create shareholder value and we will accomplish this by advancing our leadership, disrupting industries and aggressively transforming the way we work. We will become an even more customer-focused and digitally enabled company, that will lead with innovation and execute with purpose.”
Tuan Tran is the incoming president, imaging and printing, at HP.
For partners attending Synnex Inspire 2019 this week in Greenville, South Carolina, HP’s restructuring news was timely given that it coincided with a general session presentation by Richard Bailey, president of the Americas at HP. While Bailey put a positive spin on HP’s transformation, his mission was to instill partner confidence as HP navigates major shifts in the business.
“HP’s organizational transformation is designed to move us closer to our customers and partners, and to make HP more agile,” he said. “But, let me be clear: What won’t change is our commitment to the channel and our desire to help you deliver a great experience to your customers.”
What that looks like: HP is moving from three regions – Europe, the Middle East and Africa, Asia-Pacific Japan, and the Americas – to 10 key markets, with North America being the largest. Christoph Schell, HPs president of 3-D printing and digital manufacturing, will become, on Nov. 1, the company’s first chief commercial officer responsible for those markets. Stephanie Dinsmore, HP’s Americas channel chief, is moving up to become managing director, North America. The vendor announced some of these organizational changes in August.
Not only did Bailey’s message to conference attendees reiterate HP’s promise to invest in its partners, but also to focus on building trust. HP’s digital transformation will not only help HP but will deliver a better customer and partner experience, he said.
“Our relationship with you is what will define our success as a company,” said Bailey.
Another critical piece for HP as it moves forward is staying grounded, staying focused on its customers and partners, and maintaining its edge by innovating in its products, services and solutions. For that, HP Labs, the company’s exploratory and advanced research group, will continue to be a highly valuable asset that positions the company as an innovation leader, the company said.