SAN JOSE, calif. —
Hew lett-Packard on Wednesday confirmed plans for a corporate overhaul that will combine two of its biggest divisions, printing and PCs, in an effort by new chief executive Meg Whitman to turn the troubled tech giant around.
Under the reorganization, which represents some of the biggest changes at HP in years, Whitman also is consolidating global sales, marketing and communications functions that had been spread across different business units.
“The result will be a faster, more streamlined, performance-driven HP,” Whitman said in a statement Wednesday morning.
The announcement does not mention any cutbacks or layoffs, although industry experts have said some cuts are likely as Whitman follows through on a promise to streamline HP’s far-flung tech businesses and trim operating costs.
HP’s announcement did confirm a significant shake-up in the executive ranks: The combined printing and PC unit will be led by longtime PC chief Todd Bradley, 53, who is widely credited with helping make HP the world’s No. 1 seller of PCs in recent years.
Veteran printing head Vyomesh “VJ” Joshi, 57, will leave the company.
In addition, HP said its global accounts organization, responsible for selling commercial tech products to big customers around the world, would be added to the responsibilities of David Donatelli, an executive vice president who already oversees the HP division responsible for producing commercial data center hardware, such as servers, storage and networking gear.
Printing and PCs provided a combined $15 billion in revenue for HP last quarter, or about half the company’s total sales. But both divisions have reported slowing sales in recent years, as printing habits have changed and consumers have turned to smartphones and tablets as alternatives to PCs.
Reaction on Wall Street to the new plan was mixed.
ISI Group analyst Brian Marshall called the plan “a positive move aimed at value creation.” In an interview, he said combining the two groups should allow HP to cut some redundant costs and increase its buying power for components and other supplies.
