Hewlett-Packard to merge printer and PC divisions

LONDON – Hewlett-Packard (HP) said Wednesday it will combine its printer and PC divisions to save money, as the increase in online document and photo sharing hits printer and ink sales and consumers turn away from PCs towards tablet computers and smartphones.

The consolidation is Chief Executive Officer Meg Whitman’s first major strategic move since taking over the role in September, The New York Times reports. Last month she warned of radical changes, possibly including layoffs, which now seem increasingly likely.

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The new combined unit is to be led by Todd Bradley, the executive vice president of HP’s PC group since 2005, according to the Associated Press. Vyomesh Joshi, head of the printing group, is retiring after 31 years with the company.

Together, PCs and printers represented almost half of HP’s $30.7 billion in revenues and 42 percent of its profits in its most recent quarter, according to the Financial Times. 

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Both divisions have suffered from falling consumer purchases of hardware due to the growing popularity of cloud computing and devices like Apple’s iPad. HP says it needs to identify ways to save money to invest in growing businesses, such as designing PC and printers so that they work better together.

Reuniting the PC and printing divisions undoes a change instigated by former CEO Mark Hurd, who broke up the units in 2005 during his first year in charge of HP, Bloomberg reports. The company is also combining its global account sales group with its enterprise unit under David Donatelli.  

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