Technology giant HP confirmed plans
Wednesday to merge its printer and PC units in a sweeping
reorganization aimed at revitalizing the stumbling company.
"This combination will bring together two businesses where HP has established global leadership," said HP's CEO Meg Whitman. "By providing the best in customer-focused innovation and operational efficiency, we believe we will create a winning scenario for customers, partners and shareholders."
The move is the first major revamp of the company by Whitman since she reversed the decision of her predecessor Leo Apotheker to spin off the company's PC unit, which is the largest maker of personal computers in the world.
The printer group is the largest seller of printers and ink cartridges in the world but has seen its revenues fall due to the spread of tablets and cloud computing which has led customers to print fewer documents.
The two units accounted for 51 billion dollars in sales in 2011, or 51 percent of the HP's total, and brought in 6.3 billion dollars in profits.
In a statement HP said that combining the two units would improve marketing, supply chain and customer support services. "This realignment is expected to provide opportunities for cost savings and accelerate HP's ability to pursue profitable growth and reinvest in the business," the company said.
HP said that it was also unifying other units of the company, consolidating global sales, marketing and communications functions that had previously been spread across different business units.
"Ensuring we have the right organizational structure in place is a critical first step in driving improved execution, and increasing effectiveness and efficiency," added Whitman. "The result will be a faster, more streamlined, performance-driven HP that is customer focused and poised to capitalize on rapidly shifting industry trends."
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