HP to merge PC, printer businesses

Announcement comes before annual shareholder meeting

By , IDG News Service |  Business, HP, meg whitman

Hewlett-Packard Wednesday announced the merger of its Imaging and Printing Group (IPG) and its Personal Systems Group (PSG) in what it called an effort to drive profitable growth for the entire company.

The two businesses will be combined into a new unit called the Printing and Personal Systems Group, headed by Todd Bradley, the executive vice president of PSG since 2005.

The move, widely rumored earlier in the week, reflects the dimming future of the printer business relative to the PC business. While printer sales are expected to grow 1% to 2% in the next few years, the PC market will expand by about 5%, according to IDC.

HP said that by merging the PC and printer units, it will streamline its supply chain, achieve cost savings will be better able to reinvest in the business.

"This combination will bring together two businesses where HP has established global leadership," said CEO Meg 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."

Among other restructuring moves announced Wednesday, HP will merge the Global Accounts Sales organization with the rechristened HP Enterprise Group, headed up by David Donatelli. The business includes enterprise servers, storage, networking and technology services.

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