HP CEO Meg Whitman is serious about turning around HP which is in a bit of a funk as of late. So serious in fact that she’s going to take some drastic action to fix things:
- The company is going to split into two pieces. One will handle computer and printers. The other will be their corporate hardware and services operations. The latter is what is growing. Shareholders will have shares in both companies.
- 5000 People will be let go.
Now this sort of restructuring isn’t new. IBM ditched their hardware business by selling it to Lenovo and became a more profitable company after that. So clearly Whitman is hoping that lighting will strike twice. Here’s what she had to say:
“Our work during the past three years has significantly strengthened our core businesses to the point where we can more aggressively go after the opportunities created by a rapidly changing market,” 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. In short, by transitioning now from one HP to two new companies, created out of our successful turnaround efforts, we will be in an even better position to compete in the market, support our customers and partners, and deliver maximum value to our shareholders.”
I remember the days when HP was a serious player. It owned the printer market and if a PC wasn’t IBM, Dell, or Compaq, it was an HP. Now they aren’t even in the game. One has to wonder if this isn’t a hail Mary to save the company.
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This entry was posted on October 6, 2014 at 1:53 pm and is filed under Commentary with tags HP. You can follow any responses to this entry through the RSS 2.0 feed.
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HP To Hack Itself Into Two Pieces And Lay Off Thousands
HP CEO Meg Whitman is serious about turning around HP which is in a bit of a funk as of late. So serious in fact that she’s going to take some drastic action to fix things:
Now this sort of restructuring isn’t new. IBM ditched their hardware business by selling it to Lenovo and became a more profitable company after that. So clearly Whitman is hoping that lighting will strike twice. Here’s what she had to say:
“Our work during the past three years has significantly strengthened our core businesses to the point where we can more aggressively go after the opportunities created by a rapidly changing market,” 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. In short, by transitioning now from one HP to two new companies, created out of our successful turnaround efforts, we will be in an even better position to compete in the market, support our customers and partners, and deliver maximum value to our shareholders.”
I remember the days when HP was a serious player. It owned the printer market and if a PC wasn’t IBM, Dell, or Compaq, it was an HP. Now they aren’t even in the game. One has to wonder if this isn’t a hail Mary to save the company.
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This entry was posted on October 6, 2014 at 1:53 pm and is filed under Commentary with tags HP. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.