Hewlett-Packard gets set for big re-organization

With the rise of the mobile generation several of the well established technology giants have seen their once powerful empires in a downward spiral. Much of that spiral can be attributed to stubbornness about sticking with the way they have been doing business for decades. Even the companies that thought they were doing a good job at keeping up with current trends have seen a down turn.

“There’s a significant transformation going on in that industry, and maybe now HP can make its move,” said Forrester tech analyst Peter Burris, one of several analysts who say the iconic tech giant will need to get better at building and selling mobile gadgets if it wants the new spinoff to succeed.

This caused several of these once giants of the industry scrambling to right their ships. Some of the strategies that companies have been trying over the last few years are changing CEOs, re-organization, privatization and even selling off part of the business. The latest of the companies to join the trend is Hewlett-Packard as they get set to split the company into two businesses.

“The decision to separate into two market-leading companies underscores our commitment to the turnaround plan. It will provide each new company with the independence, focus, financial resources, and flexibility they need to adapt quickly to market and customer dynamics, while generating long-term value for shareholders,” said Meg Whitman, HP chief executive officer, in a press release.

Current Hewlett-Packard CEO Meg Whitman will retain control of the business software & cloud storage parts of the business. The part of the business will be renamed Hewlett-Packard Enterprises. She will then split the PC &mobile devices along with printing into a second business that current Vice President Dion Weisler will become CEO. Mr. Weisler’s new business will be called HP Inc.

Hewlett-Packard hired Ms. Whitman in September of 2011 to resurrect the struggling company. Before Ms. Whitman was hired by Hewlett-Packard she had proven herself as President & CEO of Ebay where she over saw 10 years of growth before leaving in 2008 to run, a failed campaign, for governor of California.

Mr. Weisler was hired by Hewlett-Packard in December of 2011 as a Vice President. Before coming to HP, Mr. Weisler spent almost 5 years with Levono where he was both a Vice President and COO.

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