Hewlett Packard has announced today that they will be moving their Imaging and Printing Group under the PC-manufacturing Personal Systems Group. HP executive vice president Vyomesh ?VJ? Joshi is leaving the company. The combined unit will report to executive vice president Todd Bradley.
HP is reorganizing the two groups as part of a cost-cutting and simplification initiative pushed by HP CEO Meg Whitman. HP believes that the two groups make more sense combined than separately.
The IPG unit business has declined in recent years. In the most recent quarter, HP reported that sales fell by 7% to $6.3 billion while the unit’s earnings from operations fell by 32%. The PSG and IPG accounted for $65 billion in sales in 2011. This is over 51% of HP’s overall sales. The combined profits were $6.3 billion.