This info comes from
from BBC News:
from BBC News:
6 October 2014 Last updated at 02:26 ET
Hewlett-Packard ‘to split
into two companies’
into two companies’
Technology giant Hewlett-Packard, known as HP, plans to split
itself into two companies, reports say.
itself into two companies, reports say.
The US firm will separate its better-performing computer and
printer business from its corporate hardware and services operations.
printer business from its corporate hardware and services operations.
HP is in the midst of a restructuring plan and has announced
tens of thousands of job cuts in recent years.
tens of thousands of job cuts in recent years.
In August, it reported a sharp fall in profit despite a rise in
revenue, helped by improved PC sales.
revenue, helped by improved PC sales.
Chief executive Meg Whitman, who has the job of reviving the
fortunes of the 75-year-old firm, acknowledged at the time that demand for PCs
was “coming back”, but that it was still “a declining
business”.
fortunes of the 75-year-old firm, acknowledged at the time that demand for PCs
was “coming back”, but that it was still “a declining
business”.
The Wall Street
Journal first reported on the split plans on Sunday, saying HP
had been looking to focus on its faster-growing businesses.
Journal first reported on the split plans on Sunday, saying HP
had been looking to focus on its faster-growing businesses.
It says the move could be announced as early as Monday, and one
of its sources said Ms Whitman would head the new spin-off, enterprise company.
of its sources said Ms Whitman would head the new spin-off, enterprise company.
She will also reportedly be chairman of HP’s printing and PC
business, which last quarter accounted for about half its revenue and profit.
business, which last quarter accounted for about half its revenue and profit.
Business pressures
HP has also been involved in a continuing legal dispute with
Autonomy, a British company it bought for $11.1bn (£7bn) in 2011. A year later, HP said the firm was worth $8.8bn less, accusing
Autonomy of misleading them over the true value of the company. HP recently called for Autonomy’s founder and former boss,
Michael Lynch, to “be held accountable for fraud”.
Autonomy, a British company it bought for $11.1bn (£7bn) in 2011. A year later, HP said the firm was worth $8.8bn less, accusing
Autonomy of misleading them over the true value of the company. HP recently called for Autonomy’s founder and former boss,
Michael Lynch, to “be held accountable for fraud”.
The division of HP’s businesses comes at a time when other large
tech firms are being urged to break up. Last
week, online auction site eBay announced it was splitting off its
payments system PayPal into a separate company. HP has been
under pressure from newer rivals such as Chinese firm Lenovo, which overtook HP
as the world’s largest PC maker in 2012. Third-ranked US rival Dell was taken
private last year.
tech firms are being urged to break up. Last
week, online auction site eBay announced it was splitting off its
payments system PayPal into a separate company. HP has been
under pressure from newer rivals such as Chinese firm Lenovo, which overtook HP
as the world’s largest PC maker in 2012. Third-ranked US rival Dell was taken
private last year.
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Founded
by Bill Hewlett and Dave Packard in 1939, HP helped usher in the PC revolution
and now has more than 300,000 employees globally.
by Bill Hewlett and Dave Packard in 1939, HP helped usher in the PC revolution
and now has more than 300,000 employees globally.
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