HP closes German site, lays off 850 employees

The world's number one PC maker by shipments is to close a site in Germany, laying off more than 8 percent of the country's workforce.

Computer manufacturing giant HP will close a site in Germany, leading to 850 employees being laid off, the company said today.

(Credit: HP)

In a statement, HP, which remains the world's largest PC maker by shipments, said it will restructure its entire Enterprise Services business—which accounts for more than a quarter of HP's total sales—in Germany. The company's Rüsselsheim site will ultimatley close.

While 850 employees face receiving pink slips—or around 8.5 percent of the country's 10,000 strong workforce—the planned changes will ultimately affect around 1,100 positions in the country. Employees losing their jobs will be given the opportunity to apply for open positions at other HP sites both in Germany and outside of the company, HP said. 

The remaining 250 employees that will remain at the site will also have the opportunity to transfer to other HP partners or clients.

Other sites in Germany will not be affected by the cuts. 

HP executive vice president of enterprise services Mike Nefkens said that these changes are a "necessary part of our commitment to deliver our long-term operating model." 

HP said last year that it would restructure its global business over several years. The company revised up its layoff estimates to 29,000 after first suggesting 2,000 fewer jobs would go. By the end, around 9 percent of the company will be laid off in favor of outsourcing efforts and cutbacks to the company's service offerings.

The computing giant has already recorded a $1.7 billion charge during its 2012 fiscal third-quarter as a result of its restructuring plans.

Germany is just the latest country to see a shake-up to its workforce.

A HP spokesperson noted in email to ZDNet: "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."