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HP Details Multiyear Roadmap to Turnaround the Company

October 3, 2012
SAN FRANCISCO—Oct 03, 2012—At HP’s annual Securities Analyst Meeting, being held today, the company’s leadership is mapping out strategic priorities for the future and providing a detailed multiyear roadmap to turn the company around.

During her keynote, HP President and CEO Meg Whitman outlined progress made over the past year to stabilize the business and lay the foundation for a multiyear turnaround. The operating and organizational models have been integrated, centralized and streamlined, and a talented executive team is in place to execute the strategy.

The company is positioned to extend its leadership into the major trends driving IT investment—cloud computing, information optimization and data security. In May, HP initiated a multiyear restructuring designed to realign its cost structure and create investment capacity to drive innovation against its strategic priorities, strengthen market leadership and rebuild its balance sheet while returning capital to shareholders. The company is on track to deliver on its savings targets and complete the restructuring by the end of fiscal 2014.

Whitman walked through a multiyear roadmap to turn the company around. By 2016, she expects the company’s revenues to be growing in line with gross domestic product (GDP), with operating profit growing faster than revenues, industry-leading margins and disciplined capital allocation.

“HP has a powerful set of assets, a culture of engineering innovation and a trusted brand,” said Whitman. “Now, we have to focus on bringing our incredible assets together to deliver for our customers, employees and shareholders.”

Throughout the day, HP’s management team will lay out specific plans and goals for the company’s turnaround, including:

HP Printing and Personal Systems
Todd Bradley, executive vice president of Printing and Personal Systems (PPS) at HP, will detail how PPS has retooled itself to better understand and anticipate customer needs and deliver better products and solutions that leverage the entire HP portfolio. To create efficiencies from the combination of the printing and PC units, HP PPS has been focused on consolidating supply chain functions and shrinking from six sales teams to three, while reducing functional support organizations from 12 to seven.

In addition, the group is focused on simplifying the business by reducing the number of SKUs in the printing business by 30 percent and the number of platforms in the PC business by 25 percent by the end of 2014.

The PC group within HP PPS has been refocused around customer needs. The group also completed a major refresh of its product line with a focus on design. In addition, the group launched the HP ElitePad 900, the first tablet specifically designed for businesses big and small, and is reinvesting in mobility with a dedicated leadership team.
 

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