Hewlett-Packard Company (NYSE:HPQ) CEO Leo Apotheker was replaced by Meg Whitman last month. One of the reasons why Apotheker resigned was because investors thought he was crazy for considering to spin off the company’s PC division. The board of directors at Hewlett Packard including Whitman has decided that they will be keeping their PC division.
However the company is still planning to shut down webOS division. HP decided to shut down webOS about a year and a half after the company bought Palm for $1.2 billion. Shutting down webOS means that about 500 people could lose their jobs. But if the company decided to shut down their PC division, then a lot more people would lose their jobs.
“HP objectively evaluated the strategic, financial and operational impact of spinning off PSG. It’s clear after our analysis that keeping PSG within HP is right for customers and partners, right for shareholders, and right for employees,” stated HP president and CEO Meg Whitman. “HP is committed to PSG, and together we are stronger.”
Hewlett Packard currently has the biggest marketshare in the world with about 17.7% of the market. However the PSG is HP’s least profitable division in the company. There is also some speculation that Amazon.com may buy webOS.