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 such as 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 would use the name HP Inc. The services business would be called Hewlett-Packard Enterprise.
“The decision to separate into two market-leading companies underscores our commitment to the turnaround plan,” HP CEO Meg Whitman said. “It will provide each new company with the independence, focus, financial resources, and flexibility they need to adapt quickly to market and customer dynamics.”
The split was expected to close by the end of fiscal 2015. HP stockholders would own shares of both companies.
