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HP fires CEO Apotheker after 11 months, brings Whitman in

updated 04:20 pm EDT, Thu September 22, 2011

HP drops Apotheker after tumult over mobile, PCs

HP confirmed rumors and fired CEO Leo Apotheker after just 11 months on the job. The exit is absolute and sees him exit both the CEO and president spots as well as resign as a board member. Former eBay head and HP board member Meg Whitman in turn has been chosen as a permanent CEO and president replacement, effective immediately.

Board chairman Ray Lane has now taken on the title of executive director and is nominating a head independent director.

The company was silent on full reasons for the exit but claimed that the CEO role now needed "additional attributes to successfully execute on the company's strategy," according to Lane. Whitman was being chosen because of superior "operational and communication skills."

Most have widely interpreted the exit as frustration with both long-term finances and a sudden reversal in strategy. HP's stock value has collapsed by 47 percent since Apotheker took over after the Mark Hurd scandal last year. Apotheker's decisions in August, to quit mobile hardware and mull spinning out PCs in favor of an enterprise services strategy, were likely the breaking point. His move would have erased a core part of HP's identity and may have jeopardized both the mobile and PC spaces by creating "unsellable" properties whose shrinking market share and uncertain futures led to refusals to take interest.




by MacNN Staff

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Comments

  1. bazaarsoft

    Joined: Dec 1969

    +2

    I hope they stop the layoffs

    of the WebOS folks - maybe even get some of them back depending on how the layoff were done.

  1. Tulse

    Joined: Dec 1969

    +11

    comment title

    "the CEO role now needed 'additional attributes to successfully execute on the company’s strategy'" -- which strategy precisely is that? Getting into mobile and tablets with its own OS? Getting into B2B software and out of hardware? Getting OUT of mobile and tablets?

    The problem with HP isn't that it can't execute its strategy, but that it doesn't seem to know what its strategy is.

  1. malax

    Joined: Dec 1969

    +18

    Wow

    Just wow. What the heck is going on over at HP? Did the board not approve this "let's be like IBM and dump our PC business" decision before it was announced? Sounds like the board needs to be fired too.

  1. rickcj

    Joined: Dec 1969

    +7

    As Seinfeld would say ...

    Good luck with all of that .....

  1. rvhernandez

    Joined: Dec 1969

    +5

    Ship o' Fools

    And I though RIM was funny!

  1. kerryb

    Joined: Dec 1969

    +3

    oh those suits

    the mobile meteor has hit the high tech world and the dinosaurs are starting to die off. adapt or die HP. get your vision thing going and pay attention to what is happening in the world and maybe think about what the future will look like and start planning for that day. even microsoft is trying (and failing) to keep up with the winds of change.

  1. PRoth

    Joined: Dec 1969

    0

    Hah!

    Apple Inc. would like to welcome Leo Apotheker to their Board for his successful dismantling and hamstringing of HP. Well done, sir, well done.

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