HP to split into two companies
The next step for computing giant Hewlett-Packard’s restructuring is a split into two companies.
HP announced Monday that it plans to put its PC and printer operations under one roof under the name HP Inc., and its business that provides software and services to corporate customers under another under the name HP Enterprise.
The company said the split will give both companies the focus, financial resources and flexibility to adapt more quickly to the market, while also raising the stock value for shareholders.
“Being nimble is the only path to winning,” CEO Meg Whitman said on a conference call with investors Monday.
Shares of HP jumped more than 4% in early trading following the announcement.
The split is expected to be completed by the end of 2015. News of the split was first reported by The Wall Street Journal.
The split follows a number of spinoffs and breakups this year. Most recently, eBay announced last week it would spin off the online payment platform PayPal, which it bought in 2002.
Whitman took the helm in 2011 and unveiled a five-year restructuring plan. That included a major overhaul of the printer and PC business in 2012. Layoffs have totaled at least 45,000, and the company’s projected savings have reached $4.5 billion per year.
Whitman said that the financial success of recent years is what makes a split into two companies possible.
“Three years ago this company was in a difficult situation and we needed to rebuild and do so as one HP,” she said. “Today was made possible by our turnaround.”
Source: CNN
