Hewlett-Packard (HP) is evaluating the performance of its business devisions and assets, with the view to potentially remove any that do not meet the company's "objectives" or fail to achieve particular targets.
First reported by Bloomberg, the tech giant's CEO, Meg Whitman, said in a company Dec. 27 10-K filing with the U.S. Securities and Exchange Commission that the disposition of businesses is possible in order to shore up the firm and improve the balance sheet.
Within the filing, the firm said it planned to "continue to evaluate the potential disposition of assets and businesses that may no longer help us meet our objectives." In addition, Whitman has said that she doesn't plan to spin-off the tech giant's personal computer division.
The evaluation in the "Risk Factors" section of the filing documents how the company shake-up could have a number of consequences, including the possibility of "difficulties" in finding buyers or "alternative exit strategies on acceptable terms in a timely manner, which could delay the achievement of our strategic objectives."
The Palo Alto, California-based firm has been plagued with issues over the past year, including declining sales figures and management changes. After writing down $8.8 billion in November through the acquisition of software company Autonomy, the company was called upon to shed unprofitable divisions to try and get the balance sheet back in order, which include HP's printing and PC sectors.
HP has also confirmed that the U.S. Department of Justice (DOJ) had "opened an investigation relating to Autonomy" and said it would cooperate in the inquiry. However, the inquiry isn't the only problem HP faces -- as investors are reportedly taking the tech firm to court over "misleading: statements concerning the Autonomy acquisition which then in turn caused stock prices to slump.