HP of Palo Alto, California, today announced plans to separate into two new publicly traded companies: one comprising HP’s enterprise technology infrastructure, software and services businesses, which will do business as Hewlett-Packard Enterprise, and one that will comprise HP’s personal systems and printing businesses, which will do business as HP Inc. and retain the current logo.
Immediately following the transaction, scheduled for completion by the end of fiscal 2015, HP shareholders will own shares of both Hewlett-Packard Enterprise and HP Inc. HP expects its separate into two companies to result in eliminating approximately another 5,000 jobs.
Today’s announcement comes as HP approaches the fourth year of its five-year turnaround plan. “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,” stated Meg Whitman, Chairman, President and CEO 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.”
Whitman will continue to hold the titles of President and Chief Executive Officer of HP, and Cathie Lesjak, the company’s current CFO, will hold these positions with Hewlett-Packard Enterprise. When the separation is complete, Whitman will also serve on the Board of Directors of Hewlett-Packard Enterprise, and Pat Russo will move from Lead Independent Director of HP to Chairman of Hewlett-Packard Enterprise.
Dion Weisler, Executive VP of HP’s Printing and Personal Systems business, will lead HP Inc. as President and CEO. Whitman will serve as non-executive Chairman of HP Inc.’s Board of Directors.