H-P to Reorganize Printer Unit
By JUSTIN SCHECK
June 19, 2008 1:45 a.m.
Hewlett-Packard Co. said it is reorganizing its highly profitable printer unit in the face of declining growth for the business.
The technology giant’s printing unit, which for years accounted for the majority of the company’s profits, makes consumer and commercial printers as well as ink cartridges, which provide a steady stream of continuing revenue. In a Webcast to employees Wednesday, print division chief Vyomesh Joshi said the unit’s five business units will be reduced to three in an effort to become more efficient at adapting to a marketplace in which consumers and small businesses are becoming less reliant on printing. The changes, Mr. Joshi wrote in an internal memo, would be “disruptive,” but necessary for future growth.
