Heads and Stocks Roll over HP CEO Drama
HP is again in headlines, this time to announce the decision to oust CEO Leo Apotheker Or to go for major restructuring plans as Leo announced a month back? Though the news is yet to be confirmed by the company, but people closed to HP suggesting that former EBay CEO Meg Whitman, a HP director, will take charge as the next interim leader of HP. SiliconAngle’s Founder and CEO, John Furrier, also on same page as he reported today on the HP development.
HP board is likely to meet on Thursday and an official announcement is likely to come Thursday evening or Friday.
Leo Apothekar took charge of HP in September 2010 from Mark Hurd. He was a former SAP AG executive and helped the company to transform from a software solution company to leader in ERP, hardware and software solution.
Soon after the report flashed on Bloomberg and other tech blogs, HP stock has plunged 47 percent this week, one of the worst in the Dow Jones Industrial Average.
Just a month back, Leo announced major restructuring plans to revamp HP and plans to take it to high growth and high margin business. It was started with selling its personal computer business and acquisition of UK based software company Autonomy Corp. for $10.3 billion and spinning off the webOS mobile software business including tablets, TouchPad and smartphones. HP’s board member then supported Leo strategy on these business leads but many investors and analysts criticized the moves.
Reports then started floating on sacking more than 500 employees from their Palm business division in the US and from European webOS division.
Witeman’s appointment would signify yet another turnaround strategy for HP. As per report published on Bloomberg, HP’s board is also reconsidering the decision on spinning off the PC business. Based on the uncertainty on PC business spin off and management changes, investors and analysts are skeptical about the future of the company. Look for this space on the latest development on HP.
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