Hewlett-Packard is to combine its printing and PC divisions into one business unit, according to reports citing anonymous sources.
Reuters reports that the computing giant is merging the business divisions as part of a "major internal overhaul intended to spur combined sales of hardware to customers".
Vyomesh Joshi, the current head HP's Imaging and Printing Group (IPG) will stand down, Reuters reports, while Todd Bailey, current head of the Personal Systems Group (PSG), leads the new business unit.
The move comes after CEO Meg Whitman told investors that HP needed to cut costs, during an earnings call in late February.
"Our current cost base just isn’t supportable," Whitman said. "We’ve been running our business in silos. It’s made us too costly and too slow. We need to standardize, optimize and automate many business processes. We have got to save to invest. We have got to save to grow."
In its most recent financial quarter, sales at HP's Personal Systems sales fell 15% in the first quarter 2012 to $8.9 billion. Revenues from Imaging and Printing, traditionally HP's cash cow thanks to printer ink sales, fell 7% to $6.3 billion.
HP mulled selling off its PC business entirely throughout the second half of 2011, after its Touchpad tablet failed to make an impact on the market. The company abandoned that plan after CEO Leo Apotheker was ousted in September.