PC maker Hewlett-Packard (HP) is all set to split its core business into two different segments, a new report claims.
According to the Wall Street Journal report, citing individuals familiar with the matter, the technology firm is planning to separate into 2 businesses – one that will take care of the company’s personal computer and printer business, and the other that will deal with the corporate hardware and services operations – in an attempt to focus more on the rapidly flourishing corporate services segment.
As per the report, the formal announcement of the breakup, which will see a tax-free distribution of shares to shareholders next year, could probably come today.
The Journal noted that as a part of the split, current HP CEO Meg Whitman could become the CEO of the new yet-to-be named enterprise company and also be the Chairman of the PC and printer company.
While Patricia Russo, the current HP lead independent director, would be the Chairman of the enterprise company, Dion Weisler, who is currently an executive in PC and printer division, would be named the CEO of that streamlined division.
The decision comes as the 75 year old company, founded by Bill Hewlett and Dave Packard, is struggling hard to adapt to the fast-growing mobile and online computing era.
HP’s latest move follows the split trend adopted by a number of other technology firms and corporations to better compete with global rivals. Recently, US online retail giant eBay announced that it would spin off its PayPal unit to help the unit perform better in the fast-moving online payments segment.
