Hewlett Packard to merge printing and PC divisions

Hewlett Packard (HP) plans to combine its once dominant imaging and printing division (IPG) into its personal-computer group (PSG) in a major reorganisation masterminded by its new CEO Meg Whitman, who is seeking to regain the lost sheen of the $126-billion IT giant.

In the first major move since she took over the reins of the world's largest personal computer company in September 2011, Whitman plans to merge the company's IPG and PSG divisions that together generate about $65 billion a year in revenue. 

The reorganisation would see the IPG division chief Vyomesh Joshi step down and the new combined business called Printing and Personal Systems Group would be headed by current PSG chief Todd Bradley.

Joshi had joined HP in 1980 and is one of the company's longest-serving executives and has led the IPG division for more than a decade, while Bradley joined HP in 2005 and has run the PC division ever since.

HP's former CEO Leo Apotheker had announced in August 2011 a controversial move that would have seen see the company sell or spin off its PC division, but as soon as Whitman took charge, she quickly announced that HP would keep the PC group. (See: HP not to sell its $40.7-bn PC division)

Whitman, hired by HP after the company's board fired Apotheker over his audacious plan for the business, said that HP will keep its $40.7-billion PC division since a new evaluation had found the move of selling it too costly.