HP PC, Printer Arms To Merge In Revamp, Says Source
By Poornima Gupta
SAN FRANCISCO (Reuters) - Hewlett Packard Co CEO Meg Whitman plans to combine the computing giant's PC and printing divisions in a major internal overhaul intended to spur combined sales of hardware to customers, two sources familiar with the move told Reuters.
That reorganization, expected to be announced "soon," would see printing division chief Vyomesh Joshi step down and current PC chief Todd Bradley head up the combined unit, the sources said on condition of anonymity, because the information was not yet public.
HP, which is struggling to keep its core personal computing business in the black as mobile devices from tablets to smartphones eat into sales, considered but abandoned a proposal to sell or spin off its PC arm last year after deeming it core to its overall strategy.
Chief Executive Officer Whitman is looking to streamline the organization so that it is easier for customers to buy the two products together, and to reinvest any savings into research and development, one of the sources said.
Earnings plummeted 44 percent in the fiscal first quarter and revenue slid 7 percent as the once-storied Silicon Valley institution -- which has changed CEOs twice in recent years -- struggled to galvanize computer sales.
Tech blog AllThingsDigital first reported on the reorganization.
The company declined to comment on the report.
Shares in HP slid 0.9 percent to $24.12 in afternoon trade.
(Reporting By Poornima Gupta; Editing by Phil Berlowitz and Gerald E. McCormick)
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