Hewlett-Packard splits in two


By the end of next year, Hewlett-Packard will split itself into two separate companies: Hewlett-Packard Enterprise, which will focus on servers, software, and cloud technology, and HP Inc., which will focus on the computers and printers business, specifically on efforts and investments in computing and 3D printing. Hewlett-Packard Enterprise will be led by current CEO Meg Whitman, while HP Inc. will be led by Dion Weisler, who is currently executive vice president of HP’s printing and personal systems business. Whitman will serve as non-executive chair of HP Inc.’s board of directors. “The decision to separate into two market-leading companies underscores our commitment to the turnaround plan. 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,” said Whitman in a statement. “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.” “This is a defining moment in our industry as customers are looking for innovation to enable workforces that are more mobile, connected and productive while at the same time allowing a seamless experience across work and play,” said Weisler in a statement. When she took over as chief executive in 2011, Whitman shelved plans to spin off Hewlett-Packard’s personal-computer business. “Together we are stronger,” she said in October 2011. According to Whitman, the two companies will be on very different courses. HP Inc. will be milked for cash that will be earmarked for returns to stockholders, while Hewlett-Packard Enterprisewill focus on growth through a faster pace of investment in new products and through acquisitions.