HP's plan is to make the printing unit more efficient and able to adapt to consumers and businesses that are printing less.
It's unclear whether HP's printing restructuring will involve a lot of additional layoffs. Despite the restructuring, HP's printing business isn't hurting. It's one of HP's most profitable units.
This slide, from HP's latest earnings presentation, shows how the printing division's growth has stalled, but operating profit is at its highest point in eight quarters. Overall, HP's latest quarter was solid across the board.
Nevertheless, HP needs to adjust to a shifting printer market. HP has grown its commercial printing business and is cutting costs while investing in new areas. On HP's earnings conference call, HP CEO Mark Hurd maintained that the printing group "had a strong quarter," but also noted that the group's portfolio of business is shifting as it is cutting costs.