Palo Alto, Calif., October 7, 2014: HP has announced plans to separate into two new companies: one comprising HP’s enterprise technology infrastructure, software and services businesses, which will do business as Hewlett-Packard Enterprise, and one that will comprise HP’s personal systems and printing businesses, which will do business as HP Inc. and retain the current logo.
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. "
Management Structure: Meg Whitman is to be President and Chief Executive Officer of Hewlett-Packard Enterprise. Dion Weisler, Executive Vice President of HP’s Printing and Personal Systems business, will lead HP Inc. as President and Chief Executive Officer.
This is the second time HP is being split. In 1999, HP's test and measurement business was spun off as a separate entity, Agilent.
The latest split is to be accompanied by retrenchment of some 5000 employees -- bringing the tally of job cuts since Meg Whitman took over leadership at HP to 55,000.
See our Tech Video spot where we feature a Bloomberg video on the HP split for a few days where Cory Johnson, Bloomberg West Coast Editor reveals "The bigger the layoff, the bigger Meg Whitman's bonus package"