Hewlett-Packard Company has announced in a press release that it plans to separate the company into two new publicly traded Fortune 50 companies.
The split is part of Meg Whiteman's, the president, chairman and CEO of HP, plan to reinvent the company.
HP said in the press release that one of the companies will be named Hewlett-Packard Enterprise, which will build upon HP's leading position in servers, storage, networking, converged systems, services, and software.
It will also have HP's OpenStack Helion cloud platform.
The other company will be named HP, Inc., which will be the company's leading personal systems and printing that has a strong roadmap into the most exciting new technologies, according to the press release.
The new technologies will include 3D Printing and new computing experiences.
Whiteman said in the press release that their decision to separate into two companies highlights their "commitment to the turnaround plan."
"Our work during the past three years has significantly strengthened our core businesses to the point where we can more aggressively go after the opportunities created by a rapidly changing market," she said.
The New York Times adds that the two new companies won't be having the same standing that the old HP enjoyed for decades.
The two companies won't be considered as the most innovative operations in the world.
The people, though, who will run the new companies, argue that it is not a bad thing, according to The New York Times.
HP has been enduring an existence crisis for years as it tries to change with the times while still holding on to the past.
Whiteman told The New York Times in an interview last week that they will now leave behind a company that was too large.
She said that they are creating two new big companies that have "real capabilities to change things."
Whiteman will be the president and CEO of Hewlett-Packard Enterprise, as well as a member of its board of directors, and joining her will be Cathie Lesjak as the CFO of the new company, according to the press release.
Pat Russo, who is the lead independent director of HP, will become the Chairman of Hewlett-Packard Enterprise.
Dion Weisler, the executive vice president of HP's Printing and Personal Systems business, will be the president and CEO of HP, Inc., according to the press release.
Whiteman will also serve as a non-executive chairman of the board of HP, Inc.
HP plans to complete the transaction by the end of fiscal 2015 and is intended to be tax-free to HP shareholders, according to the press release.
Once completed HP shareholders will own shares of both Hewlett-Packard Enterprise and HP, Inc.
