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.
— Meg Whitman, Hewlett-Packard CEO, in a press release announcing the plan to split the legendary Silicon Valley company into two businesses. The Palo Alto company this morning confirmed reports published Sunday that it would separate its PC and printer business from its enterprise hardware and software operations. Whitman will be chairman and CEO of Hewlett-Packard Enterprise and chairman of the PC and printer business called HP Inc., whose CEO will be Dion Weisler.
As our own Steve Johnson wrote Sunday, the move is drawing mixed reactions from analysts, with one saying HP is so big that the move makes sense, and another saying he doesn t get it because the slow-growth PC and printer business still is a significant part of the overall company.
As part of the move, HP will lay off 5,000 employees on top of the about 50,000 job cuts announced in the past couple of years.
The split is a revival of a plan that was dumped three years ago when it was suggested by former HP CEO Leo Apotheker, who was later fired. In its presentation to investors, HP says that now is the right time for a split because it s in a position of strength with, among other things, a rebuilt financial foundation and the right leadership team.
For updates on this story, check Siliconvalley.com.
Photo by Kirstina Sangsahachart/Daily News archives
