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HP Announces Restructuring, Combines Printer And PC Groups

HP hopes to streamline product lineups and marketing strategies.

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HP Announces Restructuring, Combines Printer And PC Groups
[ Business]

Yesterday we reported on rumors that Hewlett-Packard was preparing a major reorganization that would combine its printer and PC businesses into one division. The Imaging and Printing Group (IPG) and the Personal Systems Group (PSG) will be combined to create the Printing and Personal Systems Group. The new division will be headed by former Palm CEO Todd Bradley, who currently runs the Personal Systems Group. Vyomesh Joshi, current head of the Imaging and Printing Group, will be retiring.

HP CEO Meg Whitman praised Joshi’s work during his 31 years with HP, noting that during his tenure the Imaging and Printing Group “accelerated innovation and pioneered solutions that transformed the printing market.” During his term as head of IPG the divisions revenue grew from $19 billion to $26 billion, and its profits doubled to $4 billion.

The restructuring is intended to cut costs while streamlining certain aspects of HP’s business. Consolidating the two businesses will simplify HP’s marketing and customer support processes, while making it easier for the company, which has struggled significantly in recent years, to increase profits. The result of this massive reorganization, Whitman said, “will be a faster, more streamlined, performance-driven HP that is customer focus and poised to capitalize on rapidly shifting industry trends.”

The combination of the printer and PC groups is not the only move HP is making during this process. Other groups within the company are being streamlined as well. The Global Accounts Sales organization is being folded into the new HP Enterprise Group, led by David Donatelli, while marketing functions will be unified across business units under Marty Homlish, executive vice president and chief communications officer. The role of Jan Zadak, current head of Global Accounts Sales, has not been announced. Similar unifications were also announced for Communications and Global Real Estate divisions.

As mentioned above, HP has had its share of struggles in recent years as the company has fought to keep up with the changing landscape of the technology industry. While the moves announced today will no doubt be good for HP’s bottom line, it is not yet clear how many of HP’s employees will be looking for new jobs once the restructuring is complete.

HP Announces Restructuring, Combines Printer And PC Groups
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