Hewlett-Packard Will Split Into Two Companies : The Two-Way The ailing company that was founded 75 years ago has laid off more than 40,000 workers in recent years. Mergers that were meant to help it compete have not panned out.
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Hewlett-Packard Will Split Into Two Companies

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Hewlett-Packard Will Split Into Two Companies

Hewlett-Packard Will Split Into Two Companies

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MELISSA BLOCK, HOST:

From NPR News, this is All Things Considered. I'm Melissa Block.

ROBERT SIEGEL, HOST:

I'm Robert Siegel and now to All Tech Considered.

(MUSIC)

SIEGEL: We'll start with the big tech news of the day. One of the oldest and biggest computer companies in Silicon Valley - among the biggest in the world in fact - is splitting up. Here's NPR's Elise Hu to tell us more about Hewlett-Packard.

ELISE HU, BYLINE: It's not mentioned with the hot-tech company names anymore. Hewlett-Packard isn't Apple, Google, or Facebook. But in many ways, HP put Silicon Valley on the map when it was founded 75 years ago in a Palo Alto garage.

MARCO IANSITI: HP was Silicon Valley. That's how Silicon Valley started.

HU: Marco Iansiti is a professor at the Harvard Business School and leads the Tech and Operations Management Unit.

IANSITI: It's one of those sort of in a beautiful, kind of original Silicon Valley stalwarts that is in some ways winding down or breaking up into individual pieces.

HU: Both will be publicly traded companies with revenues of more than $50 billion annually.

MEG WHITMAN: We aim to be two big Fortune 50 companies but a lot more nimble, a lot more focused. Nimbleness may be the defining characteristic for technology companies over the next couple years.

HU: That's current HP CEO Meg Whitman. She'll head the new enterprise company - overseeing servers, networking, storage and the cloud business. HP Inc. gets the companies computing side - notebooks, desktops and the ubiquitous HP printers.

WHITMAN: This has been a very detailed and thoughtful process about how to roll this out to our many, many constituencies. So I feel really good about our plan.

HU: 5,000 HP employees will lose their jobs in this move. HP stock shot up 5 percent on the split-up news. It happens just a week after another Silicon Valley split. Just last Monday, eBay announced its payments on PayPal would spin off on its own. Harvard business school's Iansiti.

IANSITI: There's an explosion of connected devices that's changing business models for every sector and every company. And you can see the repercussions of that on all sorts of traditional businesses.

HU: ...Which means brace for more turbulence ahead.

IANSITI: I think we'll see a lot of uncertainty - a lot of churn over the next couple of years.

HU: And Hewlett-Packard will face that uncertainty as two companies rather than one. Elise Hu, NPR News.

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The Two-Way

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