HP to break up into two organizations, report states

meg whitman

Meg Whitman, the CEO of HP, has led a restructuring of the company.

The next stage for computing giant Hewlett-Packard’s restructuring could be a split into two businesses.

The Wall Avenue Journal, citing unnamed sources, described Sunday that HP ( HPQ , Tech30 ) strategies to set the Pc and printer functions below a single roof and its business that gives computer software and companies to company buyers underneath an additional.

The Journal mentioned the announcement could occur as quickly as Monday, and that the separation would consider place next calendar year.

HP spokeswoman Sarah Pompei declined to remark on the report.

The split follows a amount of spinoffs and breakups this yr. Most not too long ago, eBay ( EBAY , Tech30 ) introduced on Tuesday it would spin off the on-line payment platform PayPal , which it bought in 2002.

Meg Whitman, the CEO of HP, took the helm in 2011 and unveiled a five-calendar year restructuring strategy. That integrated a major overhaul of the printer and Pc enterprise in 2012. Layoffs then and given that have totaled at minimum forty five,000, and HP projected cost savings of $ 4.five billion per 12 months.

Her predecessor, Leo Apotheker, regarded a company split comparable to the one particular the Journal noted, but he remaining the company after only eleven months.

Whitman would have management roles at the two companies, the Journal stated. She would be CEO of the business organization and chairman of the components business.

Some buyers applauded the prospective transfer.

The split would enable HP to be much more “nimble” and let it “reshape” its organization, explained Brendan Connaughton, chief investment decision officer at ClearPath Funds Partners.

In distinct, Connaughton mentioned, the shift would set renewed emphasis on organization companies, “where they have incredible margins,” at times upwards of twenty%.

HP is amid the best 5 performers in CNNMoney’s Tech 30 index , which tracks considerable tech businesses. Its inventory has climbed almost 26% this calendar year, bolstered by earnings that have climbed even as sales slumped.

–CNN’s Paul LaMonica and Dave Goldman contributed to this report

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