Struggling PC Company Hewlett Packard To Be Split Up
The company that recorded a $270M loss in October 2013 in Australia is tipped to be close to splitting its PC and printers units and its corporate hardware and services operations.
Hewlett-Packard will announce the separation overnight on Monday.
Back in 2012 Hewlett Packard Australia, was ordered by a Federal Court judge on Friday to pay a $3M fine and $200,000 in legal costs for misleading consumers over their warranty rights relating to HP PC’s sold at mass retailers in Australia.
The split is the latest in a series of high-profile technology breakups, following close on the heels of eBay’s decision to spin off PayPal last week.
The Wall Street Journal said that the move to split the struggling Company up is one H-P and its investors and analysts have been contemplating for a while.
In 2012, under current H-P CEO Meg Whitman, H-P reorganized itself to combine the PC business with its more profitable printer operation.
Ms. Whitman will be chairman of the PC and printer business and CEO of the separated enterprise business.
Last year, H-P lost its place as the largest PC maker by shipments, slipping to No. 2 behind China’s Lenovo Group Ltd, according to industry research firm IDC.
H-P, famously founded in a garage in Palo Alto 75 years ago, has been undergoing a multiyear restructuring under Ms. Whitman as the company tries to stem sales declines. Aside from the PC and printer business, the rest of H-P’s revenue comes from selling services and hardware such as servers and data-storage systems to corporations, as well as software and financial services.
To combat lower sales and provide lift to its shares, H-P has laid off tens of thousands of employees and cut other costs.