A sweeping reorganization of the PC and printer manufacturer goes into effect. Here’s what you need to know.
For thousands of HP employees and partners around the world, November is the start of a new era for the storied PC and printer company. A sweeping reorganization is now in effect, bringing new leadership, go-to-market strategies, culture shifts, and — likely — more change.
The Lowdown: The reorganization is transforming HP’s global structure from three operating regions — the Americas; Europe, Middle East, and Africa (EMEA); and Asia-Pacific — to 10 more localized sales markets. The intent of the changes first announced in August is to bring greater efficiency and consistency to partners and customers around the world, drive faster innovation and the adoption of services, and ensure growth and profitability.
The Details: The reorganization comes with significant leadership changes at HP. Longtime CEO Dion Weisler officially departed with the end of HP’s fiscal year last week. Enrique Lores, who previously served as the head of the company’s imaging and printing division, is now the company’s CEO.
Christoph Schell, who had served as the company’s president of 3D Printing and Digital Manufacturing, is now HP’s first chief commercial officer. He oversees all sales and revenue activities, margin management, and go-to-market strategies. Additionally, Schell will act as an advocate for partners and customers, ensuring a link between market needs and product innovation and delivery.
In North America, longtime channel chief Stephanie Dismore is stepping up to become the managing director of the newly created North America market segment. Replacing Dismore in the channel chief role is Scott Lannum, who served under Dismore in managing regional channel strategy and operations.
The Impact: The objective of the reorganization is to create greater consistency and efficiency as HP transitions to more service-based businesses, offsets changes in its declining print business, and continues to press into next-generation computing products. The changes won’t come without pain: HP announced the reorganization will result in 7,000 to 9,000 layoffs over the next two years as it eliminates redundancies.
For partners, HP says the reorganization will give them clarity of mission and purpose, a greater degree of ease of doing business, and access to more resources.
Background: HP began its transformation journey more than two years ago as it recognized the impact of “mega-trends” reshaping regional and global markets. The changes coincide with the departure of Weisler, who was the first CEO since the split with Hewlett-Packard Enterprise in 2014. Weisler departed the company to deal with family issues in his home country of Australia.