June 20, 2006 3:42 PM PDT

HP folds Global Operations into three other units

Hewlett-Packard is folding the company's Global Operations unit into three other divisions as part of a massive restructuring plan announced a year ago.

Three of HP's main business groups will absorb the logistics and procurement duties once handled by Global Operations, the company said Tuesday in a press release on the company's Web site.

CEO Mark Hurd announced last July that his reorganization of the company, which included more than 14,500 jobs, or about 10 percent of the staff, would save the company $1.9 billion each year beginning in 2006.

"This realignment will enable us to build on this momentum while enhancing accountability and enabling greater focus," Hurd said in a statement.

Kevin O'Marah, senior vice president at AMR Research, wrote on his blog that the move will tighten the bonds within the company's major business units.

"If this reorganization delivers," O'Marah wrote, "it will give HP more supply chain agility and should also improve margins."

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reorganization, procurement, supply chain, Mark Hurd, HP

 

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