HP Is Splitting Up Into Two Companies
HP has officially confirmed rumors and announced that they company has decided to split itself into two separate publicly traded companies – HP Inc which will handle consumer PC and printer divisions while Hewlett-Packard Enterprise will handle the company’s enterprise and services divisions.
“Our work during the past three years has significantly strengthened our core businesses to the point where we can more aggressively go after the opportunities created by a rapidly changing market,” said Meg Whitman, Chairman, President and Chief Executive Officer of HP. “The decision to separate into two market-leading companies underscores our commitment to the turnaround plan. It will provide each new company with the independence, focus, financial resources, and flexibility they need to adapt quickly to market and customer dynamics, while generating long-term value for shareholders. In short, by transitioning now from one HP to two new companies, created out of our successful turnaround efforts, we will be in an even better position to compete in the market, support our customers and partners, and deliver maximum value to our shareholders.”
Whitman along with HP’s current Chief Financial Officer Cathie Lesjak will be taking their work to Hewlett-Packard Enterprise along with HP’s current Lead Independent Director Pat Russo who will be taking the Chairman position of Hewlett-Packard Enterprise’s Board of Directors. HP Inc will then be helmed by Dion Wesler as its new President and Chief Executive Officer. Additionally, Meg Whitman will still be involved with HP Inc as a non-executive Chairman of the Board of Directors.
While Hewlett-Packard Enterprise will focus on the company’s enterprise and financial services HP Inc plans to explore opportunities in “new computing experiences” as well as the 3-D printing industry while still growing its consumer PC and printing businesses. “As the market leader in printing and personal systems, an independent HP Inc. will be extremely well positioned to deliver that innovation across our traditional markets as well as extend our leadership into new markets like 3-D printing and new computing experiences — inventing technology that empowers people to create, interact and inspire like never before,” said Wesler.