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Hewlett-Packard is splitting itself into two companies, one focused on its personal computer and printing business and another on technology services, such as data storage, servers and software, as it aims to drive profits higher. The company laid off tens of thousands of people in recent years as sales crumbled, with customers shifting to mobile devices like smartphones and computer tablets. That has drastically curbed demand for HP's desktop and laptop computers, as well as its printers.
The company said Monday that the PC and printer business will use the name HP Inc. The services business will be called Hewlett-Packard Enterprise. HP CEO Meg Whitman will lead the Enterprise business. HP PC and printer chief Dion Weisler will be CEO of HP Inc. The split, if approved by the company board, is expected to close by the end of fiscal 2015. Once complete, HP stockholders will own shares of both companies. During its most recent quarter HP reported revenue of $27.6 billion, a 1 percent annual gain. It marked HP's first year-over-year increase in quarterly revenue since late 2011.
-- The Associated Press