Palo Alto, CA–HP announced an organizational realignment to improve performance and drive profitable growth across its portfolio, hoping the move will help erode the fallout from falling PC hardware prices.
As part of the realignment, HP’s Imaging and Printing Group (IPG) and its Personal Systems Group (PSG) are merging to create the Printing and Personal Systems Group, which will be led by Todd Bradley. Bradley had been 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 of HP. “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 rationalize HP’s go-to-market strategy, branding, supply chain and customer support worldwide. The move is also aimed at creating a better customer experience and driving innovation across personal computing and printing. The realignment is also expected to provide cost savings and accelerate HP’s ability to 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. Its Global Accounts Sales organization will join the newly named HP Enterprise Group led by David Donatelli. The group 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.
HP will also unify its marketing functions across business units under Marty Homlish, executive vice president and chief marketing officer, HP. This will allow for even more effective brand-building and marketing activities, and will create efficiencies across the business units.
“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.” hp.com