Computer hardware and cloud provider
Hewlett-Packard (HP) is to split into two separate companies. The move will take place by the end of 2015 and see HP form one company specializing in servers, software and cloud solutions, and another specializing in computers and printers business. The move will also see HP lose an additional 5,000 staff with manpower savings directed towards research and development.
The current CEO Meg Whitman will lead Hewlett-Packard Enterprise, the entity that will focus on cloud-based activity. HP Inc, the entity focusing on computers and printers, will be led by Dion Weisler, the corporation's current Vice President of Printing and Personal Systems. News of the measures saw HP shares increase by 5% in today's trade.
“The decision to separate into two market-leading companies underscores our commitment to the turnaround plan," explained Ms. Whitman in a statement. "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.”
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