In a decision to supercharge Hewlett-Packard’s turnaround plan by going after “opportunities created by a rapidly changing market,” President and CEO Meg Whitman today announced the splitting of the company into two separately traded public companies.
HP Inc. will house the company’s legacy business in personal systems and printing, while Hewlett-Packard Enterprise will focus on cloud-based Big Data, security, and mobility needs. Pat Russo, lead independent director of HP’s board and former CEO of Alcatel-Lucent, has been named as chairman of the board at Enterprise. Whitman will be the company’s CEO, while Dion Weisler has been named president and CEO of HP Inc.
The new B2B company will focus on software and services, and will explore opportunities in the 3D printing segment. “The decision to separate into two market-leading companies underscores our commitment to the turnaround plan,” Whitman said in a press release. “It will provide each new company with the independence, focus, and financial resources they need to adapt quickly to market and customer dynamics.”
The establishment of the two new companies is expected to be completed by the end of its 2015 fiscal year next October.