HP CEO Shakes Up Company's Executive Layer

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Earlier this year, Hewlett Packard’s head honcho, Léo Apotheker warned the world – and the company – that it was likely to have a challenging (read: really lousy) third quarter and that things were going to change. Turns out he meant it. Apotheker, who has helmed HP since November, has reportedly just restacked the executive layer of HP to try and solve some of the company’s problems. 

Business Insider reports that a number of executives are out, and many more have been elevated to report directly to Apotheker. Here are the highlights:

Ann Livermore, who was head of HP’s enterprise business and has been with the company for 29 years, will no longer carry out day-to-day duties, though she has been elected sit on the company’s board. Her job will be split into two: hardware, a position that will be taken up by Dave Donatelli, who will report directly to Apotheker, and services, a position which is not yet filled.

Pete Bocian, HP’s chief administration officer (his job was to oversee operational issues) will depart the company “immediately” and without replacement.

Chief Information Officer Randy Mott is leaving, and HP is actively searching for a replacement.

Bill Veghte, an ex-Microsoft veteran who joined HP last year and heads HP’s software business, will now report directly to Apotheker, as will Jan Sandak, HP’s head of global sales.

In the release announcing the changes, the company is also reshuffling its sales and marketing deck to focus more attention on India and China.

“As communicated in March, one of HP’s key priorities will be to deliver unique and innovative market-specific solutions to customers. Both China and India are critical markets to HP, and the company will increase its dedication to supporting these markets. To achieve this, in addition to their existing global business leadership roles, Todd Bradley, executive vice president of the Personal Systems Group, will lead cross-business initiatives focused on expanding HP’s market share in China, and Vyomesh Joshi, executive vice president of the Imaging and Printing Group, will lead similar efforts in India,” said the company in the release.

The changes, reports Bloomberg, were effected to give the company “clearer reporting lines” and provide Apotheker with more direct oversight of HP’s customer-facing components. However, at least once analyst told Bloomberg that the changes may result in disruption that could harm the company’s restructuring efforts. 

ISI Group analyst Abhey Lamba told Bloomberg, “Senior management changes in the services group could impact HP’s ability to turn the business around in the near term. Departure of senior management and appointment of a new segment chief could cause disruption.”

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Tracey Schelmetic is a contributing editor for TechZone360. To read more of Tracey's articles, please visit her columnist page.

Edited by Jennifer Russell
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