CEO Meg Whitman seeks to cut costs.
PALO ALTO, Calif. (TheStreet) -- Hewlett-PackardP(:HPQ) plans to merge its PC and printer divisions, marking the latest stage in a restructuring as hardware sales remain limp.
HP, in a statement released before market open, confirmed that its Imaging and Printing Group (IPG) and Personal Systems Group (PSG) will be merged into what's called a Printing and Personal Systems Group. The new unit will be led by HP PC chief Todd Bradley, the executive vice president of PSG since 2005. HP CEO Meg Whitman
HP also confirmed that Vyomesh Joshi, the executive vice president of IPG, is retiring after 31 years with the company.
Rumors have been swirling that HP was planning to bring the PC and printer divisions together, further signaling CEO Meg Whitman's desire to get HP back on track.
"This combination will bring together two businesses where HP has established global leadership," Whitman said in the statement. "By providing the best in customer-focused innovation and operational efficiency, we believe we will create a winning scenario for customers, partners and shareholders."
HP expects that the new structure will speed up decision making, as well as boosting productivity and efficiency.
PSG accounted for just under a third of HP's revenue during its recent fiscal first quarter. IPG made up 21% of the firm's total sales.
HP shares were up 18 cents, or 0.75%, to $24.16 in pre-market trading on Wednesday.
--Written by James Rogers in New York.
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