HP announces sweeping organizational realignment

HP today announced an organizational realignment “to improve performance and drive profitable growth.”

As part of this realignment, HP’s Imaging and Printing Group (IPG) and its Personal Systems Group (PSG) will be combined to create the Printing and Personal Systems Group. 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 chief executive officer, HP, in the press release. “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.”

HP hopes this reorg “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 organization 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. 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.

HP’s Communications employees worldwide also will be similarly unified under Henry Gomez, executive vice president and chief communications officer, HP.

Finally, HP is 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 organizational 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 capitalize on rapidly shifting industry trends.”

Source: Hewlett-Packard Development Company, L.P.

MacDailyNews Take: Rearranging the deck chairs.

29 Comments

  1. HP has a good money maker in their printer ink franchise.

    $60 for a printer and $45 for each of the 4 or 5 ink cartridges you will need each year.

    HP is not going to die, unless Apple feels like reinventing the printer business the right way.

  2. Interesting contrast: when Steve returned to Apple, the first thing he did was focus on the products. He killed a few, simplified the offerings and made development of the iMac an urgent priority. At HP, Meg is tweaking the org chart. It says a lot…

  3. “We’re reoganizing to improve efficiency.” = corporate speak for: We’re gonna fire a bunch of people to pump up revenue for a quarter or two before we go under.

    Such a sad end to the HP Way.

    1. Especially after training people for years NOT to print with the exorbitant price of printer ink cartridges. Online printing services are generally better if you need a hard photo print out anyway. The novelty of printing photos at home is gone. PDF’s, etc. have taken their toll. My printing needs have dropped dramatically.

  4. I take no joy in watching the HMS HP go glub, glub beneath the waves. HP at one time made superior products – HP-35, HP-45, HP-11C, HP-12, HP-15, and our DeskWriter from ’89.

    Nothing like having the “queen” of eBay at the tiller.

  5. Man, hard to absorb that much blatant corporate-speak this early in the morning. No announcements that actually show how all this new thinking will actually play out, just reorg talk that will somehow make it all magically happen. Best of luck Meg. This isn’t politics.

  6. It would be a sad day for tech if HP went under. This company was there at the beginning of Apple’s emergence and of Silicon Valley. I don’t think Steve Jobs would want to see HP struggling so badly, nor do I.

    1. So true … HP laser printers were such a big part of the initial desktop publishing revolution and were a critical partner in this for early Macs. Without a perspective of that time, it’s easy to troll HP’s problems.

  7. HP is certainly ahving it’s problems. The biggest one is that the ongoing procession of managment that thinks that reorganization, getting rid of people and cut backs is going to save HP. The HP Way unfortunately is dead. HP used to have a fantastic R&D center and put a lot of their research into the products that came out during the 80’s and through the 90’s into products that revolutionized the industry for printing especially.

    The printer division and the PC division used to be to together until they were broken up by a previous imperious CEO. Hopefully Queen Meg will also restore some of the R&D.

  8. “Ensuring we have the right organizational 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 capitalize on rapidly shifting industry trends.”

    Source: Hewlett-Packard Development Company, L.P.

    Who’s the executioner? 🙂

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