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Wednesday, March 21, 2012
HP Merges Printer, PC Businesses

HP said it was merging its printer and PC business in a major reorganization to save costs and boost growth.

HP's organizational realignment aimes at improving performance and drive profitable growth across the entire HP portfolio.

As part of this realignment, HP's Imaging and Printing Group (IPG) and its Personal Systems Group (PSG) are joining forces to create the Printing and Personal Systems Group. The combined entity will be led by Todd Bradley, who has served as the executive vice president of PSG since 2005.

"This combination will bring together two businesses where HP has established global leadership," said Whitman. "By providing the best in customer-focused innovation and operational efficiency, we believe we will create a winning scenario for customers, partners and shareholders."

In addition to combining PSG and IPG, HP also is taking steps to unify and streamline certain key business functions.

The Global Accounts Sales organization will join the newly named HP Enterprise Group. This group will be led by David Donatelli and includes Enterprise Servers, Storage, Networking and Technology Services.

HP also announced that it will unify its Marketing functions across business units under Marty Homlish, executive vice president and chief marketing officer, HP.

HP?s Communications employees worldwide also will be similarly unified under Henry Gomez, executive vice president and chief communications officer, HP.

Finally, HP is moving the Global Real Estate function from Finance into Global Technology and Business Processes to address real estate consolidation and improve the workplace experience for HP employees.

HP, the largest U.S. technology company by revenue, is struggling to keep its core personal computing business in the black as mobile devices from tablets to smartphones eat into sales.

HP considered for months last year a proposal to sell or spin off its PC. But the company abandoned the idea and deemed personal computers core to its overall strategy.

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