Hewlett-Packard has announced that it will be splitting into two separate companies.
The technology firm, known as HP, confirmed that it will be transforming its better-performing computer and printer business and its corporate hardware and services operations into two different entities. It continues the company's restructuring programme which has resulted in a raft of job losses over the past few years.
Earlier in the year, HP reported a drop in profits despite rising computer sales. The company recorded a $985 million (£593 million) profit for the three months to the end of July. While it saw a 12 per cent rise in personal computer sales it was not enough to match the $1.39 billion profits recorded 12 months earlier.
The Wall Street Journal reported that the split plans will allow HP to focus its attentions on its faster-growing businesses. The company has already conceded that while PCs were "coming back" it was still a "declining business". The rise of mobile devices such as smartphones, tablets and laptops has impacted on the popularity of PCs.
HP's decision to split its operations represents a major reshape of the day-to-day business of the technology giant. It boasts a workforce of around 300,000 employees, of which its printing and personal computing business accounts for half of its revenue and profit, according to the company's latest financial results.
As technology has moved forward in recent years, HP has struggled to adapt with the company falling behind the likes of Apple and Microsoft. The company has a market value of $66 billion which is significantly bettered by Apple's $596 billion and Microsoft's $380 billion.
Chinese computer maker Lenovo has also recently overtaken HP as the company is now ranked as the number one business in terms of shipments.
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