HP’s Whitman Shakes Up Deputy Ranks
Hewlett-Packard Co. (HPQ) Chief Executive Officer Meg Whitman is shaking up her executive ranks again, seeking to accelerate a turnaround by replacing the chiefs of the computer maker’s enterprise group and marketing operation, people with knowledge of the matter said.
Chief Operating Officer Bill Veghte is replacing Dave Donatelli as head of Hewlett-Packard’s enterprise group, said the people, who asked not to be identified because the moves aren’t yet public information. Whitman is promoting Henry Gomez, chief of communications, to chief marketing officer, replacing Marty Homlish.
Hewlett-Packard’s quarterly results due later today will probably reflect further deterioration in the company’s personal-computer division and underscore the competitive challenges facing the enterprise unit that sells hardware, software and services to big companies. Whitman is facing shareholders dissatisfied with the company’s performance after three years of management upheaval, strategy shifts and slowing growth that hammered the shares and complicated revival efforts.
“It’s par for the course in terms of management changes over the past several years and indicates that Meg was still not happy with the turnaround efforts,” said Bill Kreher, an analyst at Edward Jones & Co., who has a sell rating on the shares. “Ultimately the company has to have compelling products and services to see revenue and cash flow improve from here.”
Donatelli and Homlish are being given new roles, the people said. Gomez, who is also a spokesman for Hewlett-Packard, didn’t respond to messages seeking comment. Technology blog AllThingsD reported Donatelli’s move earlier today. Homlish’s reassignment was reported earlier by CNBC.
The management changes will be announced later today when Hewlett-Packard reports quarterly earnings, the people said. The computer maker’s fiscal third-quarter sales are projected to decline 8 percent to $27.3 billion, according to the average of analysts’ estimates compiled by Bloomberg. Profit, excluding some items, is predicted to shrink 14 percent to 86 cents a share.
Donatelli is leaving his job after prolonged tensions with Whitman, said the people. The division, which recorded almost $31 billion in sales last year, includes computer servers, data-storage devices, and networking equipment.
Donatelli, who joined from storage-company EMC Corp. (EMC) in 2009, is the latest executive move being made by Whitman. In June, she moved Todd Bradley, the head of the personal-computer and printer division to another job.
Hewlett-Packard shares declined 1.5 percent to $25.46 at 3:48 p.m. in New York. The stock has climbed 81 percent this year through yesterday compared with a 16 percent gain in the Standard & Poor’s 500 Index.
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