Tech giant Hewlett-Packard announced today that the company was to be restructured, splitting in half and forming a separate consumer and business divisions.
Along with the new of the new company structure, HP announced job losses into the tens of thousands.
“Shareholders will now be able to invest in the respective asset groups without the fear of cross-subsidies and inefficiencies that invariably plague large business conglomerates,” Ralph Whitworth, former HP chairman and founder of Relational Investors LLC.
The video below covers the spin off well, and discusses how things could go from here.
Source: Yahoo Finance.
Recently eBay made a similar move, separating it’s core business from PayPal.