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HP reorganises printer division

HP reorganises printer division

Hewlett-Packard will reorganise its printer unit in an effort to more efficiently serve customers, the company said.

HP cut the number of divisions in its printer unit from five to three, with the hardware and consumer supplies units combined into a newly formed ink jet and web solutions division focused on the consumer and small business markets, said HP spokeswoman Alyson Griffin.

The other units will be the graphics solutions division, focused on billboards and other large-scale printing, and the laser jet and enterprise solutions division, focused on large businesses. There will be some shifting of the vice presidents of the business units. The changes go into effect August 1.

Combining consumer hardware and supplies in one division made sense in terms of serving customers, Griffin said. "It was really ... to reduce complexity, so we could be more efficient," she said.

The reorganization was not because of declining growth, as some observers had suggested, Griffin said. HP reported that its Imaging and Printing Group had revenue of US$7.6 billion for its second quarter this year, up 6 percent from the prior year.

This reorganization is the "next step" in one that happened about a year and a half ago, Griffin said. "We're not doing this because we've experienced some [revenue] pressure," she added.

HP, which detailed the changes in a Webcast to employees Wednesday, didn't announce any layoffs in the reorganization, Griffin said. There may be some redundant positions as the company moves from five to three printer divisions, but HP will look to refocus those employees on growth areas, including the large-business market, she said.


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