posted at 17:50
Author Name: Julie Bort
Whitman: HP Used Military-Style Communication To Talk About Its Split
So how do you tell the world that you are going to carve up an $111 billion company - the biggest, most complicated spin off ever - without freaking out your investors, partners, employees? You become like a military machine, Meg Whitman told Wall Street analysts on Tuesday after reporting the company's earnings. Meg Whitman herself has thumbed her nose at IBM's sale of one of its server units to Lenovo and claimed that HP picked up a lot of IBM customers over the uncertainty just that one transaction caused. She's reassuring Wall Street that splitting HP into two huge $57 billion public companies, which will take a year, will not cause her customers to get nervous and flee. "We communicated with 38,000 customers and 69,000 partners in the first 18 hours after the announcement. It's kind of amazing. We were in a military style communication," Whitman said. When you think about that, she's really saying that years into her turnaround, which has already trimmed 41,000 employees from the payroll, HP is still too big and bureaucratic. It remains to be seen if more employees will be let go when HP divides into HP Inc., the printer/PC unit, and HP Enterprise, the rest of the company. HP board member and powerful VC Marc Andreessen has predicted that HP's split up will be so successful in making the company more nimble and able to compete with startups, that all the biggest, oldest tech companies will do the same.

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