Hewlett-Packard to split into two companies
Technology company the latest player in the industry to shake up business structure
Hewlett-Packard plans to split into two companies, becoming the latest technology company to seek a new structure in order to remain competitive. The move will see the loss of 5,000 jobs, bringing to 55,000 the cuts under a multiyear restructuring plan.
Chief executive Meg Whitman would lead a new company focusing on corporate hardware and services, while Dion Weisler, the vice-president in charge of HP's personal computer and printer operations, would head that business, HP said yesterday.
By separating HP into two businesses, Whitman is reversing her position that the firm should remain a single enterprise.
In 2011, the newly appointed chief executive ended plans by her predecessor Leo Apotheker to spin off the personal computer unit.
Efforts to spin off businesses are gathering steam at other technology companies. Last week, eBay announced that it would spin off PayPal. EMC Corp, a maker of storage computers, was exploring strategic options that could include a full or partial sale, or a spin-off of VMware, and had also held merger talks with HP, sources said.
International Business Machines Corp has been shedding its hardware operations, including selling its personal computer unit to Lenovo Group in 2005 and its low-end server unit to the Chinese company this year.
