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Monday, October 6, 2014

HP will split into two companies

Technology giant HP has announced plans to split itself into two new companies within the next 12 months. The personal computer and printer business will be known as HP Inc, while the corporate technology infrastructure, software and services businesses will become part of Hewlett-Packard Enterprise.

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HP’s President and CEO Meg Whitman will become the new President and CEO of Hewlett-Packard Enterprise. She’ll also serve as non-executive Chairman of HP Inc’s Board of Directors. Dion Weisler, who’s currently Executive Vice President of HP’s Printing and Personal Systems business, will be appointed as President and Chief Executive Officer of HP Inc.

At the moment HP is heading towards the conclusion of a five-year turnaround plan that’s seen thousands of staff lose their jobs.

Meg Whitman said “Our work during the past three years has significantly strengthened our core businesses to the point where we can more aggressively go after the opportunities created by a rapidly changing market. The decision to separate into two market-leading companies underscores our commitment to the turnaround plan. It will provide each new company with the independence, focus, financial resources, and flexibility they need to adapt quickly to market and customer dynamics, while generating long-term value for shareholders. In short, by transitioning now from one HP to two new companies, created out of our successful turnaround efforts, we will be in an even better position to compete in the market, support our customers and partners, and deliver maximum value to our shareholders.”

The deal is expected to be completed by the end of HP’s 2015 financial year (31st October 2015).

[HP announcement website]

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