HP Revamping Printing Unit

Last Updated Jun 19, 2008 2:42 PM EDT

HP will reportedly revamp its printing unit in an attempt to jump start growth.

According to the Wall Street Journal, HP is looking to cut five printing divisions to three. The Idaho Statesman first reported the story.

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.

HP's technology solutions group matches the printing unit's operating profit, the margins are lower.

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.

Larry Dignan is Editor in Chief of ZDNet and Editorial Director of ZDNet sister site TechRepublic. See his full profile and disclosure of his industry affiliations.
Credit: ZDNet

  • Larry Dignan

    Larry Dignan is editor in chief of ZDNet and editorial director of CNET's TechRepublic. He has covered the technology and financial-services industries since 1995.