By AFP on October 06, 2014 SAN FRANCISCO - Hewlett-Packard is poised to become the latest technology firm to split into two entities by separating its computer and printer businesses from its corporate hardware and services operation, the Wall Street Journal reported Sunday.
The Journal reported on its website that the California company could announce the split as early as Monday, citing individuals familiar with the matter.
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The move follows a trend of technology firms and other corporations splitting their businesses into separate companies, based on the belief that tightly focused firms perform better, the Journal reported.
Last week, US online retail giant eBay unveiled plans to spin off PayPal in a move designed to help the unit compete better in the fast-moving online payments segment.
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55,000 people on their way out as HP becomes two companies.
by Jon Brodkin - Oct 6 2014HP today confirmed yesterday's report that it plans to split itself into two companies, one for PCs and printers and another for business technology and services. HP also said its layoffs, which are already in full swing, will affect 55,000 people by the time they're done. For comparison's sake, Google's entire employee base is 47,756.
HP had 317,000 employees as of October 2013. The company got rid of 36,000 people by July of this year. HP was planning total "employee reductions" of 45,000 to 50,000 people, but it will now push that to 55,000 "to fund investment opportunities in R&D and sales," the company said in a presentation for investors today.
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By Sean Gallagher
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Three years ago, almost to the day, as Meg Whitman was taking over as Hewlett-Packard’s CEO, I offered her some unsolicited advice on what to do to save the company. Now it looks like she’s taken that advice, albeit a bit too late for the thousands of employees that will now be released into the wild to do something else with their lives. Was this trip really necessary?
As we’ve reported, HP’s executive team has decided to split the company in two, setting the PC unit free—bundled with HP’s money-printing printer unit. That’s essentially the advice I gave in October 2011, when Whitman was trying to decide what to do with the wreckage left by her predecessor, Léo Apotheker. Apotheker had blown billions on the acquisition of the “big data” software company Autonomy, only to announce that HP would spin off or sell the personal computer business because “continuing to execute in this market is no longer in the interest of HP and its shareholders.”
Since then, Whitman has been through several revisions of a new strategic vision to turn the company around. Instead of following through on Apotheker’s urge to get out of the consumer hardware business and become more like IBM—a business model that now even IBM is having a hard time with—Whitman pulled back from throwing away the PC business. She began a long process of trying to figure out what HP wanted to be when it grew up.
Full Article.
http://cdn.arstechnica.net/wp-content/uploads/2014/10/breakup-640x346.png
Three years ago, almost to the day, as Meg Whitman was taking over as Hewlett-Packard’s CEO, I offered her some unsolicited advice on what to do to save the company. Now it looks like she’s taken that advice, albeit a bit too late for the thousands of employees that will now be released into the wild to do something else with their lives. Was this trip really necessary?
As we’ve reported, HP’s executive team has decided to split the company in two, setting the PC unit free—bundled with HP’s money-printing printer unit. That’s essentially the advice I gave in October 2011, when Whitman was trying to decide what to do with the wreckage left by her predecessor, Léo Apotheker. Apotheker had blown billions on the acquisition of the “big data” software company Autonomy, only to announce that HP would spin off or sell the personal computer business because “continuing to execute in this market is no longer in the interest of HP and its shareholders.”
Since then, Whitman has been through several revisions of a new strategic vision to turn the company around. Instead of following through on Apotheker’s urge to get out of the consumer hardware business and become more like IBM—a business model that now even IBM is having a hard time with—Whitman pulled back from throwing away the PC business. She began a long process of trying to figure out what HP wanted to be when it grew up.
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