Hewlett-Packard Company (NYSE:HPQ) has decided to split into two publicly traded companies. That split is expected to complete next year. The company updated on the planned split and said it had put measures into place to ensure that the split does not lead to fallout in the business. Specifically, the company has engaged its customers, partners and employees in the split process to get their blessing for the same, according to a report by Business Insider.
At appears as though splitting Hewlett-Packard Company (NYSE:HPQ) is part of the efforts by the CEO, Meg Whitman, to enhance the value for the shareholders. Whitman is trying to turnaround the company and she has done so much already.
Cost reduction has been something like her signature at the company. As such, some employees have been let to go as the company tries to save money. Additionally, Whitman has been seeking opportunities beyond the traditional business of the company. She recently announced plans to enter 3-D printing business.
Hewlett-Packard Company (NYSE:HPQ) stated that it was sure of the support of its partners, customers and employees towards the splitting of the business. That arrived from talks with the same groups at various levels before the public announcement of plans to slice the company.
In a statement, Whitman said they used military-like communication in the efforts to secure backing for the splitting of the company. Hewlett-Packard Company (NYSE:HPQ) will separate its PC and printer business into a standalone company in the planned split. The rest of the company will also remain as a standalone publicly traded entity.
The company has eliminated more than 40,000 workers from its ranks in the name of cost reduction. It still has about 275,000 workers in its system.
Hewlett-Packard Company (NYSE:HPQ) posted 4Q earnings in line with expectation but revenue missed. It earned $1.06 per share but generated $28.40 billion in revenue. Analysts on the average sought earnings of $1.06 per share and revenue of $28.77 billion.