HP is splitting into two companies as a move to better compete in both the PC and services markets. The PC company will focus on selling computers and printers, while the services company will target business technology, data storage, and related server systems.
HP to split into two companies in 2015
HP CEO Meg Whitman resisted the move to split apart the iconic company when she took on her leadership role in 2011, but now says this is a necessary change to "more aggressively go after the opportunities created by a rapidly changing market."
Ms. Whitman will be the CEO of Hewlett-Packard Enterprises, the new company focusing on business technologies, and Dion Weisler, the current head of HP's printer business, will take over as HP CEO.
The hope is that the two companies will be more nimble in the current market and will give both "the independence, focus, financial resources, and flexibility they need to adapt quickly to market and customer dynamics," Ms. Whitman said.
HP had planned to dump its PC division before then CEO Leo Apotheker left the company in 2011. Shortly after he turned in his executive washroom key, Ms. Whitman said HP would continue to make computers.
Ms. Whitman was tasked with unenviable job of turning around the company before it collapsed. In 2012 HP started a round of layoffs that included upwards of 30,000 people as part of its turn around plan, and today's split announcements is part of that, too.
The transition should be completed by the end of 2015.