Skip to main content

Hewlett-Packard to split into two, reborn as HP Inc and Hewlett Packard Enterprise

” id=”attachment_650649″]northern california fires hewlett packard archive
Hewlett-Packard (HP) will be split into two companies, with its computer and printer business separating from its corporate hardware and services arm.

Updated on 10-06-2014 by Andy Boxall: Hewlett Packard’s CEO Meg Whitman has confirmed the company will become two separate entities by the end of 2015.

Following early rumor reports, Hewlett Packard has confirmed it will split into two firms. The first will be named HP Inc, and will incorporate the PC and printing – including a new 3D printing venture – side of the business, while the second will be called Hewlett Packard Enterprise, concentrating on corporate computing, services, and software. Current CEO Meg Whitman will stay with Hewlett Packard Enterprise, and serve as chairman over at HP Inc, while Dion Weisler will be HP Inc’s new CEO.

In a statement, Whitman says the split will help the company “go after the opportunities created by a rapidly changing market,” and has been made possible by three years of hard work “strengthening its core business.” Whitman claims the transition means the company will, “be in an even better position to compete in the market.” The changeover should be completed by the end of 2015.

Rumors gathered at the last minute

Confirmation came soon after anonymous sources told the Wall Street Journal that HP would split, and an announcement could be made on October 6. The move has apparently been in the pipeline for some time, with CEO Meg Whitman, who’s been in charge at the California-based company since 2011, finally green-lighting the plan.

The split is expected to involve a tax-free distribution of shares to stockholders, the Journal reported. A person with knowledge of the plan said that over the long term the company expects its hardware and services business to perform better than its printer and PC section, and that by separating the units each can be better run.

The massive company still employs more than 300,000 people, though it’s not entirely clear how they are spread among its various operations.

Bill and Dave

HP was founded in 1939 by Bill Hewlett and Dave Packard. The company started life in a Palo Alto garage, a location considered by many as the birthplace of Silicon Valley.

Once at the forefront of the computer revolution, the firm has dealt with tough competition from younger, more innovative rivals, including the likes of Apple, which started out some 35 years after HP (also in a garage, some 10 miles from HP’s).


HP’s maneuver comes at a time when other big names in the industry have taken similar restructuring steps to streamline business, in a bid to improve performance. For example, eBay recently announced it was planning to spin off its PayPal business.

While HP still pulls in more than $100 billion a year in revenue – an improvement on a few years ago when the company hit particularly hard times – growth has been unremarkable. Following significant job cuts in recent years, the move to split the company in two is HP’s latest effort to boost its business.

Editors' Recommendations

Trevor Mogg
Contributing Editor
Not so many moons ago, Trevor moved from one tea-loving island nation that drives on the left (Britain) to another (Japan)…
Nvidia is bringing ChatGPT-style AI to video games, and I’m already worried
Nvidia CEO delivering a keynote at Computex.

Nvidia is bringing generative AI to video games. Announced during its Computex 2023 keynote, Nvidia ACE is a new platform that allows developers to use generative AI to power conversations with characters in games.

Think ChatGPT, but instead of a general-purpose chatbot, you get a chatbot with a specific backstory and lore. Nvidia is stressing that flexibility is one of the most important aspects of ACE, as it will allow characters to have a fleshed-out backstory that informs their responses and keeps them from getting too off-topic. The company's recently announced NeMo Guardrails play a role in this, directing the conversation away from topics the developer doesn't intend.

Read more
Nvidia’s supercomputer may bring on a new era of ChatGPT
Nvidia's CEO showing off the company's Grace Hopper computer.

Nvidia has just announced a new supercomputer that may change the future of AI. The DGX GH200, equipped with nearly 500 times more memory than the systems we're familiar with now, will soon fall into the hands of Google, Meta, and Microsoft.

The goal? Revolutionizing generative AI, recommender systems, and data processing on a scale we've never seen before. Are language models like GPT going to benefit, and what will that mean for regular users?

Read more
This laptop is $229 in Dell’s Memorial Day sale, and it’s selling fast
dell inspiron 15 3000 deal june 2022 7000 01

If you've been waiting for cheap laptop deals this Memorial Day, you'll appreciate what Dell has to offer. Today, you can buy the Dell Inspiron 15 laptop for just $230 saving you $100 off the regular price of $330. While this isn't a laptop for anyone in need of high performance, if you simply want to be able to type up some documents on the move or browse the internet in a more convenient way than your phone can offer, this will suffice. The deal is already very popular with a limited stock allocation meaning we can't see this sticking around for much longer. Either hit the buy button immediately or take a moment to read what else we have to say about it.

Why you should buy the Dell Inspiron 15
As one of the best laptop brands out there, Dell knows how to offer good value for money. Here, you get an Intel Pentium Silver processor, 4GB of memory and 128GB of SSD storage. None of that is remarkable but it'll enable you to use Windows 11 Home in S mode, plus you'll be fine for typing documents or web browsing. It also has a 15.6-inch HD screen with anti-glare properties and an LED-backlit screen.

Read more