Hewlett-Packard, a trailblazing company in business computers, is poised to divide its operations into two distinct halves; detaching its personal-computer and printer businesses from its technology services. This strategic move aims to increase both efficiency and focus in their respective markets.
The Breakup, first reported on Sunday by The Wall Street Journal, and corroborated by multiple media sources and a person close to the situation, is expected to be official as of Monday. The restructuring primarily involves HP’s PC and printer business segregating itself from the technology services division, thereby providing each with their own operational autonomy.
Meg Whitman, the CEO who has been spearheading a multi-year restructuring of the company, will purportedly chair the PC and printer business whilst also holding the CEO title for the autonomous technology services company. This information, provided by numerous reports, also discloses the naming of Patricia Russo, HP’s current lead independent director, as chairwoman for the newly formed company.
Meg Whitman, HP’s CEO
Conversations around an HP division have been ongoing for more than a year, reminiscent of other corporate instances where companies are opting for strategic splits to hone their focus and deliver value to shareholders. One such example being online auction titan eBay, which announced its decision to spin off its profitable PayPal payments-processing unit on Tuesday.
Despite the buzz, HP spokeswoman Sarah Pompei offered no comment regarding the latest report on Sunday. However, The Journal suggests that the proposed division would likely be executed as a tax-free distribution of shares to HP’s stockholders next year.
Analysts perceive significant benefits to this strategic move. “The chief advantage I envisage is that the enterprise business can now steer its full attention towards the data center, allowing the PC and printer business to become more efficient and agile,” stated tech pundit Patrick Moorhead, president of Moor Insights & Strategy. Moorhead also highlighted the necessity for HP to ensure its PC and printer business possess enough capital to be competitive in consumer PC and emerging smart home markets.
Founded 75 years ago in a modest suburban garage in Palo Alto, California where it’s currently headquartered, HP has been battling declining sales whilst facing fierce competition from rivals, Oracle and IBM. Under Whitman’s stewardship, HP merged its then struggling PC business with its more lucrative printer division way back in 2012.
Interested in learning more about HP’s historic split? Check out the full story here.
This article was updated in 2025 to reflect modern realities.
[UPDATED_TB_2025]
Related Reading
More contextual TechBooky stories selected from tags, categories and article context.
Paul Balo is the founder of TechBooky and a highly skilled wireless communications professional with a strong background in cloud computing, offering extensive experience in designing, implementing, and managing wireless communication systems.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.
