More changes within HP could happen in the future

After a widening scandal that has rocked Hewlett-Packard, Chairwoman Patricia Dunn has announced that she will step down on January 18. CEO Mark Hurd will replace Dunn while retaining his positions as president and chief executive officer.

The controversy started after board leaks caused an investigation that showed Dunn ordered the checks of telephone records of reporters and board members. Even though she is stepping down as chairwoman, Dunn will remain a member of the board – which may indicate that she still has support from some board members. The company last week disclosed details that eventually led to a former board member to resign due to the poor way the situation was handled.

Federal investigators and Congress began pressuring Dunn to step down yesterday. The Federal Bureau of Investigation, House Energy & Commerce committee and the U.S. Attorney also have joined the investigation. The company now faces five inquiries from a number of federal organizations.

HP also announced that George Keyworth II resigned from the board of directors. Keyworth acknowledged that he was the confidential source used in a CNET article that came before a probe into media leaks by HP. The decisions came after the board frantically met over the weekend and yesterday.

Scandal is not new for HP executives.  The company recently underwent massive changes when Carly Fiorina, the company's previous CEO, was replaced by Mark Hurd.  Although the scandal is a sore spot on the company's history, the drastic turnaround Hurd has brought to the company at the CEO level should become even more pronounced with his new control of the company board.

"Can anyone tell me what MobileMe is supposed to do?... So why the f*** doesn't it do that?" -- Steve Jobs
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