Hewlett-Packard’s Whitman Dismantles Hurd-Era Empire - Businessweek: "Hewlett-Packard Co. (HPQ) Chief Executive Officer Meg Whitman, in her drive to boost profitability, took another step toward dismantling the computing empire former CEO Mark Hurd built with $24.3 billion in acquisitions.
The company is writing down the value of its enterprise- services business by $8 billion and shuffling management at the top of the division, Hewlett-Packard said yesterday. That follows an announcement in May that Whitman is eliminating 27,000 jobs, many of them from that unit.
The writedown reflects the dwindling value of Electronic Data Systems Corp., bought by Hurd for $13.2 billion in 2008. The deal pushed Hewlett-Packard into the low-margin business of information-technology outsourcing, handled more efficiently by rivals such as Wipro Ltd. (WPRO) and Tata Consultancy Services Ltd. (TCS) It left the company Whitman inherited ill-equipped for the shift toward cloud computing, making it a laggard in services that help clients deliver software over the Internet."
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The company is writing down the value of its enterprise- services business by $8 billion and shuffling management at the top of the division, Hewlett-Packard said yesterday. That follows an announcement in May that Whitman is eliminating 27,000 jobs, many of them from that unit.
The writedown reflects the dwindling value of Electronic Data Systems Corp., bought by Hurd for $13.2 billion in 2008. The deal pushed Hewlett-Packard into the low-margin business of information-technology outsourcing, handled more efficiently by rivals such as Wipro Ltd. (WPRO) and Tata Consultancy Services Ltd. (TCS) It left the company Whitman inherited ill-equipped for the shift toward cloud computing, making it a laggard in services that help clients deliver software over the Internet."
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