Hewlett-Packard Co, the stalwart of Silicon Valley, has struggled trying to adapt to the new era of online and mobile computing. The company plans to split into two separate companies looking to put additional focus on its corporate services that are faster growing, according to a recent report from a leading daily.
The new move, which possibly will be announced on Monday, would be a huge reshaping of one of the pioneers in technology. The company has over 300,000 employees and in the current fiscal year is set to record revenues of $112 billion.
Under the plan, HP would separate its printer and computer businesses from its corporate services and hardware operations.
The unit would be spun off through a distribution that is tax free of shares to current stockholders in 2015.
When asked, a company spokesperson would not comment on the possible spin off.
The personal computing and printing business for HP, accounts for close to 50% of its revenue as well as profit, according to its most current quarter’s results.
It is not known what the break down in staff in each of the newly planned businesses will be.
Bill Hewlett and partner Dave Packard found HP in 1939 in a garage in Palo Alto, California.
HP was an important shaper of Silicon Valley as well as the PC Revolution.
Of late, however the company has struggled with adapting to the shift into mobile computing and younger rivals have overshadowed the company.
The market value for HP sits at $66 billion, which is dwarfed by the $596 billion of Apple and the $380 million of Microsoft.
HP has been overtaken as well by Lenovo, the aggressive maker of PC’s based in China, which is now the No. 1 maker of PC’s in the world.
Dell, which is the closest competitor to HP in the U.S., is facing pressures that are similar.
HP would become just the latest in a series of companies that often under pressure from shareholders is spinning off operations attempting to become more agile to capitalize on businesses that are faster growing.
Ebay, the online auction house, last week announced it was going to spin off PayPal is electronics payments unit.