HP to merge printing with PCs: report

PSG's Todd Bradley to head HP's largest unit.

HP is reportedly considering merging its huge Imaging and Printing Group (IPG) with its Personal Systems Group (PSG) following a poor last quarter.

Under the plans, IPG's long term president Vyomesh Joshi will leave the company, according to the Wall Street Journal's All Thing's Digital blog, reporting sources familiar with the massive restructure.

HP has not issued a comment yet, however is expected to announce the plans today.   

The restructure would put IPG under former Palm boss Todd Bradley who heads up HP's US$44 billion PSG unit - which recently looked to be spun off from the company following the spectacular failure of WebOS and HP's TouchPad tablet.

IPG, which makes the bulk of its revenue from the sale of printing supplies, rather than printers themselves, suffered a 7 percent year-on-year revenue decline last quarter. Its quarterly revenues were US$6.3 billlion. 

PSG suffered a 15 percent year-on-year decline with quarterly revenues of US$8.8 billion.

HP's other main business, outsourcing and application services, also suffered declines.

HP sees a consolidated IPG and PSG unit as making more sense, according to the blog.

Combined, the pair would have represented US$16 billion of HP's US$30 billion net revenue last quarter.

All Things Digital points out IPG and PSG accounted for US$65 billion in sales in 2011, a merger making it the company's largest unit.