By BARBARA ORTUTAY
By BARBARA ORTUTAY
Associated Press
NEW YORK — Hewlett-Packard Co. is combining its printer and PC divisions as it tries to overcome dragging profits, growing competition and the absence of a focused identity.
The move announced Wednesday will help the company streamline its business and save money to invest in growing areas.
HP is also hoping its restructuring will boost innovation.
The change comes as sales of printers and ink, once HP’s lifeblood, are falling because people are sharing more documents and photos online instead of printing them.
HP, the world’s No. 1 maker of personal computers, is also coping with declining PC sales as consumers in the U.S. and Western Europe delay replacing their machines and spend money instead on smartphones and tablet computers such as Apple’s iPad.
The restructuring is one of the first major steps taken by former eBay chief Meg Whitman since she became HP’s CEO in September. Her predecessor, Leo Apotheker, had wanted to sell or spin off the PC business, a plan that contributed to his ouster after 11 months on the job. Under Whitman, HP decided to keep the unit after all.
Last month, Whitman said HP plans to spend several years turning its business around.
She promised a more streamlined and efficient company, and Wednesday’s announcement is a step in that direction.