SAN JOSE, Calif. — Hewlett-Packard Co. last week confirmed plans for a corporate overhaul that will combine two of its biggest divisions, printing and personal computers, in an effort by new chief executive Meg Whitman to turn around the troubled tech giant.
"The result will be a faster, more streamlined, performance-driven HP," Whitman said in a statement.
The announcement did not mention 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 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.
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Printing and PCs have long been the powerhouse businesses at HP, but they are no longer the biggest growth engines. They 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 was mixed. ISI Group analyst Brian Marshall called the plan "a positive move aimed at value creation."