Declining printer supply sales lead to departure of regional president
Another sign of the sweeping changes at HP comes from Europe with the news of the dismissal of EMEA president Nick Lazaridis following sharp declines in printer supply sales across the region.
The Lowdown: HP confirmed to The Register that Lazaridis is leaving the company immediately. News of Lazaridis’ departure comes just a few weeks after the announcement that CEO Dion Weisler is leaving the company in November. The two leadership changes are unrelated.
The interim replacement for Lazaridis is Helena Herrero, who most recently served as the managing director of the Spain and Portugal region. HP is looking for a permanent replacement. Lazaridis is still listed on the company’s executive leadership Web page.
The Details: At issue in EMEA is declining revenue for its previous cash-cow business: printer ink and supplies. HP’s numbers on supplies and consumables have been down in the region for three consecutive quarters. Demand for branded printer supplies is declining around the world, but the sharpest downturn is in EMEA, where HP’s revenue is off by 9% from the beginning of the year.
The source of the declining supply sales is multifold. Printed page volumes are declining as more businesses conserve paper by going digital. Adding pressure to printer companies like HP is the increasing availability of off-brand clone products, which are often significantly cheaper.
The Impact: The departure of Lazaridis will likely have little short-term impact on HP’s EMEA business or channel. HP is undergoing a sweeping reorganization with the ascension of Enrique Lores to the CEO post, the creation of the first Chief Customer Officer position, and the realignment of the company’s go-to-market strategy through the creation of 10 sales regions around the world.
Background: Last month, HP announced a massive reorganization that’s intended to break down the barriers between the operating regions around the world and lead to greater uniformity in go-to-market practices and pricing. HP appointed Christoph Schell, who most recently served as HP’s president of 3D printing and manufacturing, to the post of CCO. The changes go into effect in November, but will likely take the better part of a year to implement.