Palo Alto-based tech company Hewlett-Packard announced Monday its plans to split the company into two, with one company devoted to HP's computers and printers, which will do business as HP Inc.; and a second devoted to technology services, which will do business as Hewlett-Packard Enterprise.
"The decision to separate into two market-leading companies underscores our commitment to the turnaround plan. It will provide each new company with the independence, focus, financial resources, and flexibility they need to adapt quickly to market and customer dynamics, while generating long-term value for shareholders," said Meg Whitman, HP chief executive officer, in a press release.
The reorganization, set to be completed by the end of fiscal year 2015, will take place as a tax-free distribution of shares to the company's stockholders.
Whitman will be president and chief executive officer of Hewlett-Packard Enterprise, while current lead independent director Pat Russo will chair the Hewlett-Packard Enterprise board. Dion Weisler, an executive in the PC and printer operation, will lead HP Inc. as president and CEO, according to the press release.