Shake-Up at Hewlett Packard’s Executive Level
Key executives at Hewlett-Packard Co. are leaving as the new CEO Leo Apotheker reshapes the technology giant and confronts recent financial problems. The Wall Street Journal reported today that at least 10 executive vice presidents and senior vice presidents have left HP since Apotheker joined the company in November. A number of these exits taking place in recent weeks.
HP lowered its 2011 outlook, blaming weak consumer demand for personal computers. The company missed jumping on the band wagon of mobile, cloud and social computing. Thus, finding itself on the outside, looking in on this new revolution.
This all coming after Monday, when Bloomberg News published a memo that they got hold of from Leo Apotheker, CEO of Hewlett-Packard Co., telling 10 of his top executives that they need to control costs, to limit hiring and to gird their loins for “another tough quarter.” The leak is said to have forced HP to issue its quarterlies on Tuesday, a day earlier than planned. The numbers looked okay, with profits in the quarter ending April 30 up 5%, revenues were up 3%, but the company lowered its 2011 outlook. According to WSJ, some executives are leaving over unhappiness with Apotheker’s strategy and moves. Sources told the WSJ that others have departed because they were forced out or retired.
Meanwhile, Bill Wohl, the company’s chief communications officer, who joined the company in January, announced that HP is proud of the world-class talent that has recently joined the company. He said “it is normal and customary for there to be changes in the executive ranks when a new CEO arrives.”
These changes come at a sensitive time for HP, whose shares recently hit a 52 week low.