Hewlett-Packard (HP) has backtracked from its earlier announced intention to spin off its Personal Systems Group (PSG) – which includes its personal computer manufacturing business – after the company under the leadership of the now-ousted CEO Leo Apotheker revealed the plan in August.
The move was announced by HP Thursday last week.
In a statement, CEO Meg Whitman said that “HP objectively evaluated the strategic, financial and operational impact of spinning off PSG.”
“It’s clear after our analysis that keeping PSG within HP is right for customers and partners, right for shareholders, and right for employees,” the CEO said.
“HP is committed to PSG, and together we are stronger,” she added.
The former California gubernatorial candidate replaced Apotheker after the board of directors of the company fired Apotheker on September 22 after a series of unsuccessful quarters for the company.
The PC manufacturing arm of HP is the world’s biggest PC maker and also contributes about one third of the company’s revenue.