Hewlett-Packard will be splitting into two companies in order to reshape its business, but is this new development an example of HP becoming nimbler or is it a way for the company to saw off its less profitable arm?
The Silicon Valley company, which has been struggling to find a niche in an increasingly mobile world, will split to focus one business on computers and printers and the other on "corporate hardware and services operations," according to Reuters. It also plans to "spin the unit off through a tax-free distribution of shares" to shareholders. The company is expected to make the announcement Monday.
This is a major restructuring of the company which made $112 billion this year and has more than 300,000 employees. It's market value is considered to be $66 billion.
Hewlett-Packard was founded in 1939 in a Palo Alto, Calif. garage and shaped the personal computer industry and Silicon Valley. Now, however, Chinese company Lenovo is the world's top PC maker and it faces a strong U.S. rival in Dell.