SAN FRANCISCO, Aug 21 (Reuters) – The head of
Hewlett-Packard Co’s enterprise group business has been
reassigned, a source familiar with the matter said on Wednesday,
in the latest high-profile executive-switch for a company
grappling with crumbling personal computer sales.
David Donatelli, a high-flying executive that Wall Street
analysts once considered a potential tech company CEO candidate,
has been given a new role, the source said without further
elaboration. Donatelli could not be reached for comment.
HP declined to comment on the news, which was first reported
by tech blog AllThingsDigital. The blog cited an unnamed source
as saying CEO Meg Whitman wanted “fresh eyes” on the enterprise
business.
Whitman, who took over the reins at HP in September 2011, is
trying to revive the Silicon Valley icon which was sideswiped by
the rapid decline of global PC sales.
In June, HP moved PC division chief Todd Bradley into a new
role aimed at improving its China business and distribution
relationships around the world, a move many analysts deemed a
demotion.
The Enterprise Group is HP’s largest business unit after
personal computers, providing services to corporations ranging
from networking and storage to servers. It is a critical
component of Whitman’s efforts to boost margins and
profitability, while trying to minimize revenue declines.
The division recorded a 10 percent decline in sales in the
second quarter, but had the highest operating margin of 15.9
percent after the software unit, and accounts for about a
quarter of the company’s annual sales.
HP shares were down 2 percent to $25.34 ahead of its release
of third-quarter results after the bell.
