HP combines printer, PC units in turnaround effort

AP Photo
AP Photo/Paul Sakuma

NEW YORK (AP) — Hewlett-Packard Co. is combining its printer and PC divisions as it tries to overcome dragging profits, growing competition and the lack of clear identity.

The move announced Wednesday will help the company streamline its business and save money to invest in growing areas. HP, a Silicon Valley pioneer, is hoping a renewed focus on innovation will re-establish the 73-year-old company as a technology trailblazer

“We have got to place a few bets where we can fundamentally change the name of the game,” HP CEO Meg Whitman told shareholders Wednesday at the company’s annual meeting in Santa Clara, Calif. The Associated Press monitored a webcast of the meeting.

Whitman said printing remains one of the areas where HP can still make its mark. First, though, she said the company needs to trim its expenses, describing the combination of the PC and printing division as a “perfect example” of her streamlining plans.

“We are going to have to save to get growth going again at HP,” Whitman told shareholders.

Wednesday’s restructuring is one of the first major steps that Whitman, formerly eBay Inc.’s chief, has taken since she took the top job at HP in September. Her predecessor, Leo Apotheker, had wanted to sell or spin off the PC business, a plan that contributed to his ouster after 11 months on the job. Under Whitman, HP decided to keep the unit after all.