HP To Become Two Separate Companies As Consumer Splits From Corporate
It has been confirmed that HP will indeed split itself into two companies, with its corporate hardware and services division soon to be known as Hewlett-Packard Enterprise with existing CEO Meg Whitman retaining position as chairman of the board for the consumer side as well, and HP Inc. becoming the PC and printing brand, with new initiatives like 3D printing taking off, they will be headed by Dion Weisler.
The company’s decision to split is part of its five-year turnaround plan, according to a release detailing the move, the tech giant has had a troubled few years recently and these moves are their big push to make the company profitable once more. The release claims it will reduce debt at the operating level, and help make the organization more nimble and better able to deal with changes in the market. It’s set to be completed before the end of the fiscal year in 2015.
This separation will mean the two halves will be able to work freely with other companies without worrying about the effects on their corporate or consumer side respectively, allowing them to extend their reach and presence. Combining the two has in the past prevented the company forming relationships with other hardware and software companies that compete with the other half. It also opens up potential acquisition opportunities, especially for the enterprise division, which has apparently been attracting some interest from players like EMC. So it may not be long before HP becomes part of something bigger.