backtop


Print 37 comment(s) - last by NellyFromMA.. on Sep 28 at 11:15 AM


Meg Whitman says she wants to move ahead with her predecessor's plans to chop up HP, including cutting out its core personal computer business.  (Source: Reuters (inset); Appetite Indulgence)
Company will still be place on the butcher's block with parts cut off and new ingredients added

Yesterday was seemingly a significant day for Hewlett-Packard Company (HPQ) with the board firing divisive CEO Léo Apotheker and pegging former eBay, Inc. (EBAY) CEO Meg Whitman as his replacement.  Now it looks like that move might have been more of a token gesture to placate angry shareholders than an actual sign of change.

Reuters reported mid-yesterday that insiders stated that HP executives had not deviated from plans to butcher the company, gutting the core Personal Systems Group 
in a spinoff and discarding the webOS devices business.  That report was confirmed yesterday in a brief interview of new CEO Meg Whitman by Bloomberg Businessweek.  The new CEO commented, "It [the leadership change] does not signal a change in the strategy. We are behind the actions that were taken on Aug. 18. We are firmly committed to Autonomy."

The news set investor pessimism to new highs.  The unpopular plans and outrage at analysis that HP is 
grossly overpaying to buy UK software maker Autonomy, Corp. Plc. (LON:AU) sent shares plunging to new lows.  Stock was down 4.4 percent in today's trading to beneath $21.80.  Previously shares had hit a low of $22.22 -- a 47 drop from when Mr. Apotheker assumed the CEO position.  Initially when news hit of Mr. Apotheker's departure, stock jumped to $24.92 on hopes that the leadership change might signal a course correction for HP.

If there's a ray of sunshine in the gloomy outlook for HP, it's that HP will owe Mr. Apotheker 
no severance pay, unlike previous CEO Mark Hurd who was given a severance package estimated to be worth between $25M and $50M USD.



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

RE: idiots
By NellyFromMA on 9/23/2011 3:26:41 PM , Rating: 3
It is insane that they would replace Apotheker and yet continue his policies. I'm curious as to the exact justification for this?

As for them killing their big push for webOS, I do think that was smart as HP simply can't fight as hard/long (money wise at least) as Apple, Google or Microsoft.

As for the PC side of their business, I don't know if I have much of an opinion on that. Personally, I hate HP PCs and have never interacted with a quality one, nor do I appreciate their often bloated peripherals.

I feel like their reputation in the PC field is tarnished enough where there are enough people who either know themselves or know someone who is savvy enough to recommend against an HP PC purchase.

I also don't have any experience with their servers, but from what I understand that deliver better/well in this market. Still, I personally would stick with my Dell servers and due to their lackluster reputation in my and my collegues' minds, I would never gamble such a procurement on an HP machine of any sort.

Just my two cents.


RE: idiots
By CK804 on 9/24/2011 12:09:16 AM , Rating: 2
Looks like you don't know about their business PC line. I agree 100% that their consumer line of PCs is garbage, but their business stuff is a whole different story. It's analagous to night and day.


RE: idiots
By NellyFromMA on 9/28/2011 11:15:52 AM , Rating: 2
Without a doubt, I have no idea. I've heard good things about the server lines, but have no experience what-so-ever with their business line. You're actually the first person that I've heard speak highly of it. I'll keep it in mind.


"People Don't Respect Confidentiality in This Industry" -- Sony Computer Entertainment of America President and CEO Jack Tretton














botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki