HP to shake up its printer operations

HP is looking to increase the profitability of its cash cow printer busines by making some radical changes. Not only will the computing giant make a number of staff redundant, but it will also reduce the number of products it supports.

  • E-Mail
By  Peter Branton Published  May 8, 2005

HP is looking to increase the profitability of its cash cow printer busines by making some radical changes. Not only will the computing giant make a number of staff redundant, but it will also reduce the number of products it supports. While HP is a clear market leader in printing, it is facing increasing pressure from other players, such as rival Dell. This is squeezing its margins. Since HP’s Imaging and Printing Group is responsible for nearly three quarters of HP’s profits, despite accounting for less than a third of its US$80 billion in sales, it is keen to do what it can to bolster the business. The company has embarked on an effort, dubbed “Operation Lead Dog”, which will see it look at all aspects of its busines and focus on those areas where it sees the best opportunities. “Operation Lead Dog is not new,” said Amr Hassan, general manager, Imaging and Printing Group, HP Middle East. “This is about shifting resources to where the business is,” he explained, adding that the Middle East is seeing an increased focus, with more resources being made available to the region. In the US, HP has embarked on a voluntary redundancy programme, with staff being offered a severance package last month. According to Business Week, HP wants to cut the overall headcount of the division by as much as 10%. There has also been speculation that HP is looking at exiting certain parts of the imaging and printing business, as well as pruning the number of products it supports. Hassan said there were no concrete plans, but added HP constantly reviews its product mix. “I believe this is an ongoing exercise to review our product lineup and decide where to focus our needs,” he said. In certain product lines, where HP supports a lot of models in a range, it may reduce the number of models, he explained.

Add a Comment

Your display name This field is mandatory

Your e-mail address This field is mandatory (Your e-mail address won't be published)

Security code