Tech giant HP could be on the verge of splitting in two, says a new WSJ report, a move that could help the struggling company to better focus and re-invent itself.
The company has struggled greatly in the computer and mobile areas, but still brings in over $100 billion in revenue per year and has over 300,000 employees despite the recent announcement that 30,000 employees would be laid off in a cost cutting move.
A split would separate the struggling computer and printer businesses from its fast-growing and much more profitable corporate hardware and services operations.
Over the past few years, investors have grown louder in their call for a split of the company or a full sale of the PC and mobile businesses. The corporate services division provides computer servers, networking and data storage to businesses, a much higher margin endeavor.
After the split, current CEO Meg Whitman will become CEO of the enterprise company and stay as chairman of the PC business.
Source:
Reuters
A split would separate the struggling computer and printer businesses from its fast-growing and much more profitable corporate hardware and services operations.
Over the past few years, investors have grown louder in their call for a split of the company or a full sale of the PC and mobile businesses. The corporate services division provides computer servers, networking and data storage to businesses, a much higher margin endeavor.
After the split, current CEO Meg Whitman will become CEO of the enterprise company and stay as chairman of the PC business.
Source:
Reuters
