Report: HP mulls merging printer, PC units

Hewlett-Packard is considering a reorganization that would see the company's printer unit combined with its personal computer business, according to a Wall Street Journal report Tuesday.

The plans, which are contingent on CEO Mark Hurd's final approval, would put both units under the leadership of Todd Bradley, the chief of the company's PC group, according to the report, which cited people close to the situation.

HP representatives declined to comment on the report, saying they don't comment on rumor or speculation.

The move would be an about-face for the company, which combined the printer and PC units before in 2005 when then-CEO Carly Fiorina was looking to boost the company's struggling PC business. The company's printer business was so successful that some were calling for the company to spinoff the division.

However, just five months after Hurd took over the HP helm after Fiorina's ouster by the board in 2005, he split them up again and appointed Bradley, former chief executive of PalmOne, as new leader of its personal systems group.

Last month, HP posted a 19 percent drop in profit for the third quarter of 2009, its third straight quarter of falling profit. For the quarter ended July 31, PCs accounted for $386 million in earnings, or 12 percent of HP's profits, while the printer business generated $960 million in earnings, or 30 percent of the company's profits.

[Jenkster25]

Of course Hurd wants to merge more departments together! That way he can make more people "redundant" and "expendable." It's always been his business plan to profit by layoff.

[Random_Walk]

It also helps w/ confuzzling your stockholders by merging the financials of your struggling PC division with your still-profitable printer division. ;)

[wanaka1975]

yeah you are right that is part of Mark Hurb plan, lay off more workers. It is much easier for an CEO to think about cutting cost than growing a business. He won't care after that he made a couple of million and walk away

[khoivu4477]

Why would I have to buy this combination when my networked printer is good for the whole family? Silly business when I have to pay more money for the printer ink than for the printer itself. That is why I never look t HP laptop/desktop. Nor do I buy multi-function printer/scanner/copier.

[SpeedPsycho]

>>Why would I have to buy this combination when my networked printer is good for the whole family?
Did you read the article?

>>Silly business when I have to pay more money for the printer ink than for the printer itself.
All the printer companies do it because it makes business sense. HP is the least offensive IMO, and top notch quality.

>>Nor do I buy multi-function printer/scanner/copier.
good for you.

[k9jdk]

Looks to me to be yet another let's give more people their pink slips. Wonder how many it will be this time?

How much fat can one cut before getting into the muscle and bone. Then what?

[Grifter02]

When I read the headline, I thought it meant they were going to start making computers inside printers, so you only need one product that does it all.

[Mr. Dee]

I am surprised they having so many losses especially since I am seeing HP dv notebooks almost everywhere. I can't tell when last I printed anything from my HP Deskjet 840c.

[AppleSuxLeo]

Bring back Carly LOL

[darkebinary]

This is what Mark Hurd does. He comes in the door, cuts everything to the bone to boost profits (or in this economy stabilize them), grabs a big bonus, and runs like hell. He?s all about the short term fix. Just ask NCR who he supposedly "turned around". Now look at how they are doing in the long run. Their profits fell 49% in one quarter this year alone.

[Wonderbra1]

When I read the headline, I thought it meant they were going to start making computers inside printers. Anyway thanks a bunch for sharing such a great and informative post with us. Keep blogging.