Hewlett-Packard to split into two public companies, lay off 5,000 Hewlett-Packard Co said it would split into two listed companies, separating its computer and printer businesses from its faster-growing corporate hardware and services operations, and eliminate another 5,000 jobs as part of its turnaround plan. HP said its shareholders would own a stake in both businesses through a tax-free transaction next year. Each business contributes about half of HPs revenue and profit. Shares of the 75-year-old company, which has struggled to adapt to the new era of mobile and online computing, were up 4.4 percent at $36.78 in late morning trading on Monday. Chief Executive Meg Whitman told Reuters the newly created HP Inc would mostly stick to its knitting – PCs and printers – for now, while exploring related markets such as 3D printing. The company has no plans to venture into the hotly contested consumer mobile devices market, where it stumbled years ago. There’s still lots of opportunities in other adjacencies, where we don’t chase the market leaders, said Whitman, who will be CEO of HP Enterprise, the business that will sell computer servers and networking gear and data storage to businesses. Whitman said HP’s balance sheet had improved markedly over the past few years, allowing the company to come to the decision to split up from a position of strength. This would not have been possible three years ago, she said, referring to a proposal to spin off PCs in 2011.
Posted on: Tue, 07 Oct 2014 09:32:48 +0000
Trending Topics
Recently Viewed Topics
© 2015