Rumor had it, and rumor was right. This morning, HP officially announced an organizational realignment that's set to "improve performance and drive profitable growth across the entire HP portfolio." Corporate speak, sure, but what's happening is that the Imaging and Printing Group (IPG) and Personal Systems Group (PSG) are joining forces to create the Printing and Personal Systems Group. The newly merged entity will be headed up by one Todd Bradley, who has served as the executive VP of PSG since '05. Vyomesh Joshi, executive VP of IPG, seems to be getting the better end of the deal, cashing in his "retirement" card after 31 years at the company. In related news, HP's Global Accounts Sales organization will join the newly named HP Enterprise Group, and it will "unify its Marketing functions across business units under Marty Homlish, executive vice president and chief marketing officer." Lastly, the company is sliding its Global Real Estate function from Finance into Global Technology and Business Processes, which is bound to befuddle precisely no one. For the full chair rearrangement, head on past the break.
PALO ALTO, Calif., March 21, 2012
HP today announced an organizational realignment to improve performance and drive profitable growth across the entire HP portfolio.
As part of this realignment, HP's Imaging and Printing Group (IPG) and its Personal Systems Group (PSG) are joining forces to create the Printing and Personal Systems Group. The combined entity will be led by Todd Bradley, who has served as the executive vice president of PSG since 2005.
Vyomesh Joshi, executive vice president of IPG, is retiring after a highly accomplished 31-year career at HP. Under Joshi's leadership, IPG has grown revenue from $19 billion to $26 billion, and doubled its operating profit to approximately $4 billion.
"VJ embodies the spirit of HP and his impact on the company has been tremendous," said Meg Whitman, president and chief executive officer, HP. "Under his leadership, IPG accelerated innovation and pioneered solutions that transformed the printing market. We wish him the very best as he embarks on a new chapter in his life."
Combining these two entities will rationalize HP's go-to-market strategy, branding, supply chain and customer support worldwide. This will lead to a better customer experience and drive innovation across personal computing and printing. This realignment is expected to provide opportunities for cost savings and accelerate HP's ability to pursue profitable growth and reinvest in the business.
"This combination will bring together two businesses where HP has established global leadership," said Whitman. "By providing the best in customer-focused innovation and operational efficiency, we believe we will create a winning scenario for customers, partners and shareholders."
In addition to combining PSG and IPG, HP also is taking steps to unify and streamline certain key business functions.
The Global Accounts Sales organization will join the newly named HP Enterprise Group. This group will be led by David Donatelli and includes Enterprise Servers, Storage, Networking and Technology Services.
The new structure is expected to speed decision making, increase productivity and improve efficiency, while providing a simplified customer experience. A new role for Jan Zadak, executive vice president for Global Sales, will be announced at a later date. Zadak will work with Donatelli to ensure an orderly transition.
HP also announced that it will unify its Marketing functions across business units under Marty Homlish, executive vice president and chief marketing officer, HP. This will allow for even more effective brand-building and marketing activities, and will create efficiencies across the business units.
HP's Communications employees worldwide also will be similarly unified under Henry Gomez, executive vice president and chief communications officer, HP. Together these two moves will create a more powerful voice to demonstrate the power of "One HP."
Finally, HP is moving the Global Real Estate function from Finance into Global Technology and Business Processes to address real estate consolidation and improve the workplace experience for HP employees.
"Ensuring we have the right organizational structure in place is a critical first step in driving improved execution, and increasing effectiveness and efficiency," added Whitman. "The result will be a faster, more streamlined, performance-driven HP that is customer focused and poised to capitalize on rapidly shifting industry trends."