is reorganizing its procurement and logistics activities in the company's latest move to cut costs.
The Palo Alto, Calif., technology company said Tuesday that its three main business groups will take on various tasks previously handled by the global operations division. The move, expected to be completed by November 2006, is part of H-P's ongoing restructuring efforts, which are expected to result in the previously announced elimination of 15,300 jobs by the end of the year.
"This realignment will enable us to build on this momentum while enhancing accountability and enabling greater focus and customization of operations based on the needs of our customer segments," said CEO Mark Hurd in a statement.
Under the new plan, H-P's individual business groups will be responsible for companywide activities like supply chain, procurement, logistics and certain marketing functions. The personal systems group, which makes personal computers, will carry out procurement for goods used throughout the company. The printing group will take on logistics functions such as freight costs management and customs operations.
Shares of H-P, which closed down 2.1% Tuesday, recently rose 4 cents to $32.90 in extended trading.