Technology giant HP has scrapped the plans to spin off its personal computer unit, about a month after the ouster of its former CEO Leo Apotheker who had mooted this proposal in August last as part of the strategic overhaul.
"HP objectively evaluated the strategic, financial and operational impact of spinning off Personal Systems Group [PSG]. It is clear after our analysis that keeping PSG within HP is right for customers and partners, right for shareholders and right for employees," HP President and Chief Executive Officer Meg Whitman said in a statement.
HP is committed to PSG, and together we are stronger, she added.
Investors were shocked when former CEO Apotheker said that the company was considering hiving off the PSG -- which includes PCs -- and would kill its new tablet computer TouchPad as part of its new strategy.
Apotheker was fired last month after the announcement of acquisition of British software firm Autonomy for $10 billion.
Calling the PSG a key component of HP's strategy, Whitman said HP's board is confident that the vertical can drive profitable growth as part of the larger entity and accelerate solutions from other parts of HP's business.
"As part of HP, PSG will continue to give customers and partners the advantages of product innovation and global scale across the industry's broadest portfolio of PCs, workstations and more," HP PSG Executive Vice President Todd Bradley said.
HP is a leading manufacturer of personal computers with revenues totaling $40.7 billion for fiscal year 2010.