Hewlett-Packard (HP) restructure plans is to see the tech giant split its operations into two separate companies.
This news comes as the US firm is into the fourth year of its five year restructure plan, separating the higher performing computer and printing business, which accounted for around half of the firm’s revenue and profit last quarter, from its corporate hardware and services operations.
Meg Whitman, HP’s current Chief Executive, will head the new Hewlett Packard Enterprises, which houses the corporate operations, while standing as the Chairman for HP Inc.; the printing and PC business.
Whitman has said that the split will allow both firms the” flexibility they need to adapt quickly to market and customer dynamics”.
She also went on to say that they “can [now] more aggressively go after the opportunities created by a rapidly changing market”.
The division is set to be complete by the end of 2015 financial year and shareholders will be given stakes in both the companies.
This restructuring plan has already resulted in tens of thousands of job cuts and is in response to the 75-yeard-old firm facing pressure from rivals; Chinese firm, Levono overtook HP in 2012 as the world’s largest PC manufacturer, and US rival, Dell was taken private last year.
However, HP are not the only large tech firm to make such a move; eBay announced last week that it would be splitting from its payment system, PayPal, into a separate enterprise.
Source: BBC News