One of the emergent firms will be known as Hewlett Packard Enterprise, and will be headed by Meg Whitman, chief executive officer of HP as of October 2014.
Patricia Russo, who serves as an independent director at HP as of October 2014 will head its board of directors.
The new firm will inherit the enterprise-focused operations of HP such as its server, software and networking businesses.
The other firm will be named HP Inc and will be headed by Dion Weisler, the Executive Vice President of HP's Printing and Personal Systems division as of October 2014.
Meg Whitman will head the company's board of directors.
HP Inc will retain the consumer-focused personal computer and printer businesses.
The two firms' stock will be distributed tax free to current stockholders using a formula that has yet to be announced.
The company did not provide details of how the company's 300,000 employees would be split between the two firms.
Ironically, a 2011 plan to spin off the company's personal computing division into a separate company was shot down by stockholders and eventually led to the replacement of the then chief executive officer, Leo Apotheker by Meg Whitman.
According to the Wall Street Journal, the split will make it easier for HP to focus on the rapidly growing corporate services industry.
If successful, the plan would provide a huge boost to the company's standing.
Despite HP's iconic brand, global reach and massive revenue, estimated to hit $110 billion at the end of the fiscal year, the tech firm has struggled to find footing in an era increasingly dominated by mobile and cloud computing.
According to Techspot, the large majority of pundits and stockholders prefer lean firms paired with tighter foci.
The preference is based on the belief that such an approach increases the possibility of corporate success.
In addition, splitting up a company helps attract skilled talent as most executives dislike leading subsidiaries, according to Forbes' Steven Bertoni.
HP is not the only firm seeking to restructure operations by splitting up.
On September 30, 2014, eBay announced that it would be spinning off PayPal into a separate company in 2015.
Once separated, Dan Schulman, former president of American Express will head PayPal while David Wenig, head of eBay marketplaces will shoulder chief executive duties at eBay.
Will HP's plan to split into two companies turn the lumbering giant into a nimble competitor? Only the future can tell.
With the rapid rise of competitors such as Lenovo, the iconic tech giant badly needs to succeed.
Patricia Russo, who serves as an independent director at HP as of October 2014 will head its board of directors.
The new firm will inherit the enterprise-focused operations of HP such as its server, software and networking businesses.
The other firm will be named HP Inc and will be headed by Dion Weisler, the Executive Vice President of HP's Printing and Personal Systems division as of October 2014.
Meg Whitman will head the company's board of directors.
HP Inc will retain the consumer-focused personal computer and printer businesses.
The two firms' stock will be distributed tax free to current stockholders using a formula that has yet to be announced.
The company did not provide details of how the company's 300,000 employees would be split between the two firms.
Ironically, a 2011 plan to spin off the company's personal computing division into a separate company was shot down by stockholders and eventually led to the replacement of the then chief executive officer, Leo Apotheker by Meg Whitman.
According to the Wall Street Journal, the split will make it easier for HP to focus on the rapidly growing corporate services industry.
If successful, the plan would provide a huge boost to the company's standing.
Despite HP's iconic brand, global reach and massive revenue, estimated to hit $110 billion at the end of the fiscal year, the tech firm has struggled to find footing in an era increasingly dominated by mobile and cloud computing.
According to Techspot, the large majority of pundits and stockholders prefer lean firms paired with tighter foci.
The preference is based on the belief that such an approach increases the possibility of corporate success.
In addition, splitting up a company helps attract skilled talent as most executives dislike leading subsidiaries, according to Forbes' Steven Bertoni.
HP is not the only firm seeking to restructure operations by splitting up.
On September 30, 2014, eBay announced that it would be spinning off PayPal into a separate company in 2015.
Once separated, Dan Schulman, former president of American Express will head PayPal while David Wenig, head of eBay marketplaces will shoulder chief executive duties at eBay.
Will HP's plan to split into two companies turn the lumbering giant into a nimble competitor? Only the future can tell.
With the rapid rise of competitors such as Lenovo, the iconic tech giant badly needs to succeed.
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