Hewlett-Packard today announced that it's shaking things up in a big way. As part of what the company calls an "organizational realignment," HP has decided to combine its Imaging and Printing Group (IPG) and its Personal Systems Group, or printer and PC businesses, into a single entity. At the same time, executive vice president of IPG, Vyomesh Joshi, is calling it quits after serving 31 years with the company.
HP President and CEO Meg Whitman had some nice things to say about Joshi on his way out, words that were well deserved after he helped grow IPG's revenue from $19 billion to $26 billion during his time as VP, as well as doubling operating profit to around $4 billion. She also discussed the decision to merge the company's lucrative printer and ink business with its market leading (but much less profitable) PC division.
"This combination will bring together two businesses where HP has established global leadership," said Whitman. "By providing the best in customer-focused innovation and operational efficiency, we believe we will create a winning scenario for customers, partners and shareholders."
HP nearly severed its PC business under the previous leadership of Leo Apotheker, a software guy who was run out of town, and that option was still on the table when Whitman took over. She wasted little time in deciding it was in HP's best interest to maintain its market leading PC business, and the company believes this merging of the titans will speed up decision making, increase productivity, improve efficiency, and ultimately provide a simplified customer experience.