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HP policy shift under new CEO – will keep PC business

Hewlett Packard have said that they will not be selling off their PC section of the business. CEO Leo Apotheker was fired in September over his plans for the future, and the company have reversed this particular decision.

The Guardian newspaper in the UK has heard that HP do plan on shutting down their webOS division, which was bought for $1.2 bn in April 2010 when they bought Palm. Sadly, this could mean that 500 people will lose their jobs as this section of the business is shut.

HP said on their website “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. HP is committed to PSG, and together we are stronger.”

New CEO Meg Whitman has reversed the decision brought into play by Apotheker and they announced that “The data-driven evaluation revealed the depth of the integration that has occurred across key operations such as supply chain, IT and procurement. It also detailed the significant extent to which PSG contributes to HP's solutions portfolio and overall brand value. Finally, it also showed that the cost to recreate these in a standalone company outweighed any benefits of separation.”

WebOS was left twisting in the wind, however top level executives have been leaving and one employee told the Guardian “There's a 95% chance we all get laid off between now and November, and I for one am thinking it's for the best.”

HP tried to find a buyer for webOS but it would appear that no company is interested in the platform. Initially there were comments that Amazon may be buying the operating system but they seem to be focused on Android, which is included on their upcoming Kindle Fire tablet, set to target the Apple iPad, but at half the price.

Kitguru says: So far Meg Whitman's strategy has proven popular with analysts, who believe she is making the right moves in her early start as the new CEO.

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