Now that the merger is a go, Compaq Computer Corp. and Hewlett-Packard Co. wasted little time in creating a new corporate structure and product roadmap for the Canadian marketplace, although the new entity remained tight-lipped on the issue of job cuts.
After the companies’ convergence, Paul Tsaparis continues as president and CEO of HP Canada, the new creation. Tsaparis will also head the firm’s Enterprise Systems Group (ESG), which focuses on storage and server management.
David Booth, former Compaq Canada president and general manager, will lead HP’s telecommunications vertical market for the Americas, said Rob Ireland, a spokesman for the new company.
John Trisic, former senior vice president and general manager, consumer business organization, leads HP Canada’s Imaging and Printing Group (IPG), which includes digital cameras, scanners and printers. HP Canada said this group would foray into the commercial printing market on Trisic’s watch.
Reg Schade, who was Compaq Canada’s vice-president, global services, now leads HP Services (HPS) the consulting arm. Lloyd Bryant, former vice-president, emerging enterprise and public sector accounts, will control the Personal Systems Group (PSG), which includes desktop, notebook and handheld computers.
While the new HP also unveiled its product roadmap (see sidebar), details about the 15,000 positions it plans to cut are still pending.
During a press conference on May 7, Tsaparis from HP Canada said that until the four business units – ESG, IPG, HPS and PSG – were fully integrated he could not speculate about layoffs, but he did not rule out the possibility.
HP Canada has 6,900 employees across 58 sites.
Ireland said, “Without doubt, there will be a level of participation by HP Canada in the workforce reductions. However, just how many, where and when, that’s not something that HP is likely to divulge.”
He added, HP Canada is a “customer facing” company, so the firm’s clients should benefit from a “net add” of a double-sized sales and support team after the merger.
Earlier in May Bob Wayman, chief financial officer at HP, said, “We don’t believe there will be a need to have layoffs in excess of 15,000 people.” He added that HP expected 8,000 to 10,000 people to leave as a result of attrition.
HP Canada now has two corporate headquarters, Ireland said. The HP site in Mississauga, Ont. is currently referred to as HP West, while the Compaq site in Richmond Hill, Ont. is known as HP East. “I believe the headquarters will reside in Mississauga, HP West,” Ireland said.
With files from IDG News Service