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Breaking up is hard to do, but HP won't look back

James Niccolai | Nov. 26, 2014
Breaking up Hewlett-Packard is "totally the right thing to do for this company," CEO Meg Whitman said Tuesday, after HP reported declines in revenue and profit for the last quarter.

But it's unclear when those and other initiatives, like its low-power Moonshot servers, will pay off. At one time, Whitman predicted a return to growth for HP in 2014, but that hasn't happened, and on Tuesday she said it probably won't happen in 2015, either.

So HP is starting the fiscal year with its work cut out for it — even without the distraction of breaking up the company.

Customers and employees are "excited" about the split, according to Whitman, but big structural changes rarely lead to increased sales in the short term — just ask Dell.

"I have a lot of confidence that we'll deliver in fiscal year 2015, which is critical," Whitman said. "The most important thing we can do to get these two companies off on their own is to deliver this year."


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