The Hewlett-Packard Co. (HPQ: Quote) or HP, Wednesday announced a slew of restructuring measures through which it aims to "unify and streamline" important business functions. Crucially, it targets marrying the Imaging and Printing Group or IPG with the Personal Systems Group or PSG.
The IPG, HP's printing business, and the PSG, the personal computing business, are where HP has "established global leadership". Executive Vice President of PSG Todd Bradley is expected to lead the merged entity, dubbed Printing and Personal Systems Group.
The IPG's merger with the PSG is anticipated to create cost savings, and also allow greater reinvestment in the business. The action may also result in "customer-focused innovation and operational efficiency," according to President and Chief Executive Officer Meg Whitman.
The move contrasts the company's attempt in 2005 to combine the same two divisions under the moniker Imaging and Personal Systems Group. However, with a change of leadership from Carly Fiorina to John Hurd, that restructuring bid ended, but saw the appointment of Bradley as PSG's executive vice president.
Executive Vice President Vyomesh Joshi of the IPG is expected to retire, HP said, with Whitman describing his contribution as "tremendous". Joshi's leadership is seen as being pivotal to the division growing operating profit to approximately $4 billion and revenues to $26 billion.
Also part of the present revamping is the merger of the Global Accounts Sales organization with the newly-anointed HP Enterprise Group, which also comprises Enterprise Servers, Storage, Networking and Technology Services. David Donatelli was named to lead this Group, with Global Sales head Jan Zadak assisting him prior to moving to an as yet undisclosed new role.
Marty Homlish, executive vice president and chief marketing officer was appointed to lead a unified Marketing unit which, the company hopes, may enhance brand-building and marketing activities. A similar action is planned for the Communications business, with Executive Vice President and Chief Communications Officer Henry Gomez expected to be at the helm.
The Global Real Estate function may be moved from the Finance division to Global Technology and Business Processes with the objective of improving the employees' workplace experience via consolidating real estate.
HPQ is currently trading down by 1.88 percent, or $0.45, at $23.53 on the NYSE.
| || |
| To receive FREE breaking news email alerts for Hewlett-Packard Company and others in your portfolio|
by RTT Staff Writer
For comments and feedback: email@example.com