HP is planning to slash 850 jobs as part of the restructuring plan for its enterprise-services business in Germany, the company announced Friday.

While a total of 1,100 positions will be affected, the remaining 250 employees at HP’s site in Rüsselsheim (slated for closure as part of the plan), will have the opportunity to transfer to the company’s partners or clients, HP said.

Scaling down the size of operations in Germany is only one part of a company-wide restructuring effort HP CEO Meg Whitman announced in May 2012. The effort, expected to streamline operations and save between US$3bn and $3.5bn per year, includes layoffs and early retirement of a total of 27,000 employees, as Whitman attempts to reverse the troubled giant’s gradual downward slide.

Mike Nefkens, executive VP of HP Enterprise Services, said the services division’s optimization plan was aggressive and included reshuffling of the division’s portfolio, as well as its sales and delivery model. “The changes we are announcing in Germany today are a necessary part of our commitment to deliver our long-term operating model,” he said.

Portfolio improvements will include expanding offerings in “higher-growth” services, such as cloud and information management. HP also wants to strengthen accountability and empower account executives, as well as optimize the cost structure with a focus on account performance.

HP will slash the 850 jobs in Germany through efficiency gains, outsourcing to local partners and consolidating the unit with other HP service-delivery hubs. The company said it would give employees in these positions the opportunity to apply for open positions at other HP sites.

The proposition to transfer the other 250 employees to partners and clients could be similar to what HP did with its former services customer GM. In October, GM announced it would hire about 3,000 HP employees who were working as IT-services contractors at GM, as it changed its IT strategy from mostly outsourcing to mostly in-house.

Reshuffling of the enterprise services division has been taking place at all levels of the division. In August, HP let John Visentin, former senior VP and general manager of the division, go, appointing Nefkens as replacement.

The division, which is undergoing a second restructuring effort in two years, has been in turmoil for some time now. In 2010, the company announced it would restructure the enterprise-services business, two years after it grew the business by acquiring the IT outsourcing company EDS for $13.9bn.

In August 2012 (as it announced Visentin’s departure), HP announced an $8bn write-down, linking the drop in company value to poor performance of enterprise services.