Another big technology company is splitting in two.
HP announced today that it will cut itself into two publicly-traded companies — one made up of the company’s enterprise technology infrastructure, software and services businesses and the other made up of its personal computer systems and printing businesses.
The printer and PC business unit — to be led by Dion Weisler — will operate under the name HP Inc. and retain the current logo. The services business will operate under the name Hewlett-Packard Enterprise, led by Meg Whitman. The revenue of the two units is nearly identical, at roughly $58 billion. Operating profit also is about the same — $6 billion for Hewlett-Packard Enterprises to $5.4 billion for HP Inc.
“The decision to separate into two market-leading companies will provide each new company with enhanced independence, focus, financial resources, and flexibility to adapt quickly to market and customer dynamics, while generating long-term value for shareholders,” the company wrote in a press materials today.
“Our work during the past three years has significantly strengthened our core businesses to the point where we can more aggressively go after the opportunities created by a rapidly changing market,” said Meg Whitman, Chairman, President and Chief Executive Officer of HP. “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.”
When Whitman took over HP in 2011 she ended plans to spin off the PC unit.
HP has been undergoing a major restructuring in recent months under Whitman’s direction, with 36,000 employees leaving the company under the plan. The company said today that it now anticipates a total of 55,000 employees leaving the company as part of the plan.
The news comes just a few days after eBay announced plans to spin off its PayPal business, but in that case CEO John Donahoe is departing.