October 6, 2014. HP today confirmed earlier reports that it planned to split into two parts—one consisting of the personal-computer and printer business and the other focusing on servers, data storage, software, and services. The latter part will do business as Hewlett-Packard Enterprise; the personal computer and printer company will do business as HP Inc. and retain the current logo.
The announcement comes as the company approaches the fourth year of a 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,” said Meg Whitman, chairman, president and chief executive officer of HP, in a press release. “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.”
Whitman will be president and chief executive officer of Hewlett-Packard Enterprise; Pat Russo will be chairman of the Hewlett-Packard Enterprise board. Dion Weisler (currently executive VP of HP’s printing and personal systems business) will be president and chief executive officer of HP Inc.; Meg Whitman will be chairman of the HP Inc. board.
Oddly, the Wall Street Journal headlines its article “Hewlett-Packard Set to Break Up 75-Year-Old Company”—not acknowledging the previous spinoff of the original test and measurement business into Agilent Technologies in 1999 (and the test-and-measurement business’s spinoff into Keysight Technologies this year).