HP's enterprise group chief Donatelli "reassigned" - source

Reuters News
Posted: Aug 21, 2013 2:01 PM

SAN FRANCISCO (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.

(Reporting by Edwin Chan; Editing by Leslie Gevirtz)