HP confirms organisational realignment

Vendor combines its printer and PC business units

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HP confirms organisational realignment Whitman says combining the two entities will rationalise HP's go-to-market strategy.
By  Manda Banda Published  March 21, 2012

Technology powerhouse HP has confirmed its organisational realignment, which it says is aimed at improving performance and driving profitable growth across the entire HP portfolio.

As part of the rearrangement, HP's Imaging and Printing Group (IPG) and its Personal Systems Group (PSG) are joining forces to create the Printing and Personal Systems Group (PPSG). The combined entity will be led by Todd Bradley, who has served as the executive vice president of PSG since 2005.

Vyomesh Joshi, executive vice president of IPG, is retiring after a highly accomplished 31-year career at HP.

Under Joshi's leadership, IPG has grown revenue from $19 billion to $26 billion and doubled its operating profit to approximately $4 billion.

"VJ embodies the spirit of HP and his impact on the company has been tremendous," said Meg Whitman, president and CEO, HP in a statement. "Under his leadership, IPG accelerated innovation and pioneered solutions that transformed the printing market. We wish him the very best as he embarks on a new chapter in his life."

Combining these two entities will rationalise HP's go-to-market strategy, branding, supply chain and customer support worldwide. This will lead to a better customer experience and drive innovation across personal computing and printing. This realignment is expected to provide opportunities for cost savings and accelerate HP's ability to pursue profitable growth and reinvest in the business.

"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."

In addition to combining PSG and IPG, HP also is taking steps to unify and streamline certain key business functions.

The Global Accounts Sales organisation will join the newly named HP Enterprise Group. This group will be led by David Donatelli and includes Enterprise Servers, Storage, Networking and Technology Services.

The new structure is expected to speed decision making, increase productivity and improve efficiency, while providing a simplified customer experience. A new role for Jan Zadak, executive vice president for Global Sales, will be announced at a later date. Zadak will work with Donatelli to ensure an orderly transition.

HP also announced that it will unify its Marketing functions across business units under Marty Homlish, executive vice president and chief marketing officer, HP. The company says this will allow for even more effective brand-building and marketing activities, and will create efficiencies across the business units.

HP's Communications employees worldwide also will be similarly unified under Henry Gomez, executive vice president and chief communications officer, HP. Together these two moves will create a more powerful voice to demonstrate the power of 'One HP.'

HP is also moving the Global Real Estate function from Finance into Global Technology and Business Processes to address real estate consolidation and improve the workplace experience for HP employees.

"Ensuring we have the right organisational structure in place is a critical first step in driving improved execution, and increasing effectiveness and efficiency," added Whitman. "The result will be a faster, more streamlined, performance-driven HP that is customer focused and poised to capitalise on rapidly shifting industry trends."

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