Hewlett-Packard plans to separate into two companies-its PC business and the other, its corporate and hardware services.
The world's leading PC manufacturer, Hewlett-Packard, plans to spin-off its printer business, reportedly contributes half of HP's profits.to focus more on its faster-growing corporate hardware and services business.
The move will be announced on Tuesday, Oct. 7 according to the Wall Street Journal.
HP Spokesperson Sarah Pompei declined to comment on the issue.
Meanwhile, HP plans to materialize its goal by a tax-free distribution of shares to stockholders in 2015.
The California-based electronics giant has long been considering the move, according to Bloomberg.
Chief Executive Officer Meg Whitman will juggle between two jobs, CEO of the enterprise business and Chairman of the PC business.
Furthermore, Lead independent Director Patricia Russo will be the Chairman of the enterprise company
Dion Weisler, VP in charge of the PC business will serve as the CEO of the PC and Printer company.
From being one of the pioneers in the industry, HP reportedly cannot keep up with the major technological changes happening today including drastic change towards mobile computing.
HP lost its title as the world's No. 1 PC maker to Chinese PC manufacturer Lenovo last year.
Aside from that, the electronics company, which reported $66 billion in sales this year has been overtaken by younger companies including Apple Inc. and Microsoft Corp., which earned $596 billion and $380 billion, respectively.
Former HP CEO Leo Apotheker brought the idea back in 2011, but HP's current CEO Meg Whitman passed up the plans to spin-off the PC business.
HP is not the first to spin-off businesses in the tech industry. Several other companies have taken that route, including International Business Machines Corp which sold its PC division Lenovo Group Ltd. back in 2005.
Also, e-commerce giant eBay revealed its intention to spin-off and end its ties with payment unit PayPal.
Shares of Hewlett-Packard jumped 26 percent after the spin-off announcement.
