HP splitting into two companies

HP is planning to split itself into two businesses. Known as Hewlett-Packard Enterprise, one part of the new company will handle enterprise hardware, software and the services businesses. The other half will be made up of its PC and printing businesses, will be called simply HP Inc., and will keep the HP logo.

The split is forcast to occur by the end of its 2015 fiscal year, which ends on Oct. 31 next year.

Ranjit Atwal, a research director at Gartner, said: "Creating a separate company introduces uncertainty about its future—but there was already uncertainty about what HP wanted to do with the PC and printing business."

Under the plan, the company now expects to lay off a total of 55,000 staff.