HP to split into two companies

VARINDIA- INDIA'S FRONTLINE IT MAGAZINE

As a part of a radical restructuring plan, the US technology firm HP (Hewlett-Packard) is mulling to split itself into two separate companies. The company is dividing its computer and printer business from its corporate hardware and services operations. If reports are to be believed, HP will also go for another 5,000 layoffs as part of its turnaround plan. According to the latest update, HP’s present Chief Executive Meg Whitman will head both HP Enterprise and printing & PC business and the enterprise segment will house the corporate hardware and services operations. Meg Whitman said, “The split would give both firms the required ‘flexibility’ they need to adapt quickly to market and customer dynamics. We can now more aggressively go after the opportunities created by a rapidly-changing market." It is reportedly said that the division is expected to be complete by the end of the 2015 financial year and the shareholders will be given a stake in both businesses through a tax-free transaction next year.