MOSCOW, October 6 (RIA Novosti) - Hewlett-Packard (HP), the computer and printing giant, has confirmed its plans to split into two companies and cut 55,000 jobs in total in a statement published on the company's official website Monday.
"The decision to separate into two market-leading companies underscores our commitment to the turnaround plan. It will provide each new company with the independence, focus, financial resources, and flexibility they need to adapt quickly to market and customer dynamics, while generating long-term value for shareholders," President and Chief Executive Officer of HP Meg Whitman said in a statement.
"In short, by transitioning now from one HP to two new companies, created out of our successful turnaround efforts, we will be in an even better position to compete in the market, support our customers and partners, and deliver maximum value to our shareholders," she added.
By the end of 2015 the company will split into two enterprises: Hewlett-Packard Enterprise that will be focused on servers, software and cloud technology, and HP Inc that will concentrate on focusing on the legacy computers and printers business, as well as developments in 3-D printing. Current CEO Meg Whitman and Dion Weisler, executive vice president of HP printing and personal systems business, will be heads of the enterprises correspondingly.
"This is a defining moment in our industry as customers are looking for innovation to enable workforces that are more mobile, connected and productive while at the same time allowing a seamless experience across work and play," Whitman continued.
Moreover, the company confirmed the planned additional reduction of 5,000 jobs, which means that HP will have its staff cut by 55,000 positions in total. The money saved will be spent on research.
According to Forbes, the company's announcement resulted in its shares soaring in Monday's pre-market trading session.
Hewlett-Packard is an American corporation specialized in the manufacture of computing, data storage and networking hardware, as well as designing software and delivering services.