Meg Whitman's 2 Reasons For Why She Is 'More Convinced Than ever' To Split HP Into Two Separate Entities

Hewlett-Packard Company HPQ came out with mixed second-quarter earnings report on Thursday. However, on the earnings call HP CEO Meg Whitman gave investors and analysts an update on the company’s efforts to split its business into two separate entities, saying, “Today I’m more convinced than ever that this is the right thing to do”, following which HP's stock opened higher and continues to trade strong on Friday.

Whitman was on CNBC Friday to discuss why she is more convinced now that splitting HP into two businesses is the way to go forward.

“[We have been on it now] for 6 months and I am more convinced than ever that this is the right thing to do and I will tell you couple of reasons why,” Whitman said.

Reason 1: Nimbleness

She continued, “Our markets are moving at lightning speed, both the enterprise market as well as the printing and PC market and we need to be faster, we need to be more nimble. We need to have a cost structure that is appropriate for the competitors that we face in both those businesses and the opportunities are enormous and it’s going to be easier to capture that as two separate really focussed companies.”

Reason 2: Hard To Manage Totally Different Businesses

And I will just tell you as the CEO, it is hard every day to go from inkjet printers to Superdome Integrity X servers running [SQL]. To go from an elitebook 1020 to a huge government contract where we are running the backbone of one of the big government agencies. So, I think it’s going to be great for our customers, great for employees and ultimately great for shareholders,” Whitman concluded.