The once famous maker of printer and scanners has decided that its Imaging and Printing Group, should be linked to its less than popular PC-making Personal Systems Group in a restructuring plan.
For a while now, joining the PC division of HP was probably not the best of career moves. HP was thinking of selling the outfit which it thought were made for low margins. However the printer division was still seen as the jewel in the crown. After all, HP made a real killing out of selling printer ink that was more expensive than gold.
According to All Things Digital, printer man Vyomesh “VJ” Joshi, will exit the building and the combined business unit will report to Executive Vice President Todd Bradley.
It is all part of a cunning plan dreamed up by CEO Meg Whitman to save money and simplify the HP dinosaur’s organisation. We think it is unfair that VJ has to go, he had already simplified his name until it was just initials.
But Whitman is desperate to work out more ways of streamlining HP’s operations. She sees that IPG sells printers both to consumers and businesses, and PSG sells PCs to consumers and businesses so they are more or less the same thing, besides the both have the letter “G” in their acronym.
She thinks that if they were one big jam sandwich they would be able to come up with unified product offerings – such as PCs that print and printers that are PCs.
IPG sells more printers than anyone else in the world, but makes most of its money selling ink cartridges . IPG reported that sales fell by 7 percent, to $6.3 billion, while the unit’s earnings from operations fell by 32 percent. Part of that loss was due to the fact that consumers expected HP to sell the unit.
Bradley is the one time CEO of the handset maker Palm and would have been the CEO of the spun-out PC company if HP had done that.
It looks like the streamlining gives Bradley responsibility for what is easily the biggest group inside HP so he probably does not feel the need to go somewhere else for a power kick.
“WME honorees not only promote ethical business standards and practices internally, they exceed legal compliance minimums and shape future industry standards by introducing best practices today,” its web site says.
So it looks like Microsoft has put its past behind it and has become a good Vole. One thing that is telling is that Apple, which markets itself as ethical, clean and green, did not even make the list.