HP To Separate Into Two New Public Companies
Today marks an exciting step in HP’s history. We announced plans to separate HP into two new publicly traded companies. The first will do business as Hewlett Packard Enterprise, a market-leading company that will define the next generation of infrastructure, software, and services for the New Style of IT. The second company will do business as HP Inc., the market-leading printing and personal systems company, which empowers people to create, interact, and inspire like never before. Both will be Fortune 50 companies with strong financial foundations, compelling innovation roadmaps, sharpened strategic focus, and experienced leadership teams.
Accelerating Our Turnaround
We are taking this step as HP approaches the fourth year of our five year turnaround plan. As I reflect on our journey so far, I am incredibly proud of the work we have done to strengthen our core businesses while keeping customers and partners at the forefront.
In 2012, we stabilized the company and laid the foundation we needed to return HP to growth. In 2013, we focused on fixing and rebuilding. We reduced our operating company net debt to zero, streamlined business processes, improved our cash flow, and made important R&D investments. This year has been about recovery and expansion. We reignited our innovation engine, restored our go-to-market capabilities, rebuilt our balance sheet, and reinvigorated our employees.
The next phase of our turnaround is all about acceleration. By separating, we’ll be able to accelerate the progress we’ve made to date, unlock additional value for our customers and partners, and more aggressively go after the opportunities in front of us. This move will also enable greater speed and agility as we work to meet rapidly changing customer requirements and market dynamics.
Hewlett Packard Enterprise
I will serve as President and Chief Executive Officer of Hewlett Packard Enterprise, and will also serve on the Board of Directors. After the close, Pat Russo will move from Lead Independent Director of HP to Chairman of Hewlett Packard Enterprise.
Hewlett Packard Enterprise will continue to offer customers unparalleled choices of how to deploy and consume technology, but as a more nimble partner. It will also have greater flexibility to support investments across our portfolio, and to strengthen Enterprise Services’ go-to-market capabilities.
Dion Weisler will be President and Chief Executive Officer of HP Inc. I will serve as the non-executive Chairman of HP Inc.’s Board of Directors. Dion and his leadership team have done an excellent job of strengthening our relationships with customers and channel partners, segmenting the market, and driving product innovation.
This is a critical time in our industry as consumers and enterprise customers are looking for innovative ways to be more mobile, connected and productive. HP Inc. will be extremely well-positioned to leverage its impressive portfolio and strong innovation pipeline across areas such as multi-function printing, Ink in the office, notebooks, mobile workstations, tablets and phablets, as well as 3-D printing and new computing experiences.
Customers and Partners First
Our turnaround journey has been driven by the belief that customers and partners come first. We’ve intensified our focus on our customers and partners – ensuring that we are the best technology partner in the world, doing everything we can to help our customers succeed. Everything we do is with them in mind.
As separate companies, we’ll continue to improve on these commitments and put our customers’ and partners’ needs first. That won’t change. Our customers and partners will continue to remain at the center of everything we do.
Overall, I am thrilled about how this separation positions HP and its brand for the future. I believe we are creating two compelling companies that will win in the marketplace for many years to come.