HP Splitting Into Two Companies

Hewlett-Packard is splitting itself into two companies, one focused on its personal computer and printing business and another on technology services, such as data storage, servers and software, as it aims to drive profits higher.

Hewlett-Packard, like other PC makers, has been facing changing consumer tastes — moving away from desktops and laptops and toward smartphones and tablets.

EBay Inc. this month said it would spin off its fastest growing segment, payment service PayPal, into a separate and publicly traded company.

According to records, HP has also faced revenue declines 11 of the past 12 quarters.

The company laid off tens of thousands of people in recent years as sales crumbled.

The planned breakup, the report showed, follows other big companies that have spun off business units in order to drive growth.

The shared hope is that the two units will be worth more separately and be able to grow more quickly apart than they can together.

HP said Monday that the PC and printer business will use the name HP Inc. The services business will be called Hewlett-Packard Enterprise. HP CEO Meg Whitman will lead the Enterprise business. HP PC and printer chief Dion Weisler will be CEO of HP Inc.

“The decision to separate into two market-leading companies underscores our commitment to the turnaround plan,” Whitman said. “It will provide each new company with the independence, focus, financial resources, and flexibility they need to adapt quickly to market and customer dynamics.”