HP to merge its printing and PC groups
HP, Omnicom join on print
Hewlett-Packard Distribution Co. (HP) will merge its Imaging and Printing Group and its Personal Systems Group (PSG) into the Printing and Personal Systems Group, said Michael Thacker, a member of HP's corporate media relations team. Todd Bradley, EVP of PSG, will run the new entity; Vyomesh Joshi, EVP of the Imaging and Printing Group, will retire.
HP said the move will “drive innovation across personal computing and printing.” The creation of the Printing and Personal Systems Group comes at a time when slow growth is predicted in the U.S. printer market, according to IDC's “U.S. Printer 2011-2015 Forecast and Analysis.”
The two HP departments had the least revenue growth during 2011. In its 2011 year end annual report, HP reported flat growth from the Imaging and Printing Group and a 2.9% decrease in revenue for PSG.
This is not the first time that HP has flirted with drastically altering its declining hardware businesses. In 2005, then-HP CEO Carly Fiorina merged the printing and PC departments, only to have the decision reversed by incoming CEO Mark Hurd. In August of last year, HP's board authorized a plan to explore “alternatives” for PSG and the PC business, according to a company statement.
HP would not comment on whether layoffs were expected due to the restructuring. The company also declined to say how its PC or print products would be affected or on the extent to which its customers would be affected in terms of product pricing or customer support.