SAN FRANCISCO Oct 3 Hewlett-Packard
Chief Executive Meg Whitman on Wednesday blamed unprecedented
executive turnover in past years for dragging out the turnaround
of the sprawling Silicon Valley computing giant.
Whitman, who became HP's third CEO in as many years after
taking the helm from an abruptly dismissed Leo Apotheker, is
trying to revitalize the former industry icon via layoffs, cost
cuts, and expansion into areas with longer-term potential such
as providing enterprise computing services.
Apotheker's 11-month tenure was marked by an acceleration of
departures from various divisions, such as networking chief
Marius Haas, as he brought in former coworkers from SAP AG
"My belief is that the single biggest challenge facing
Hewlett-Packard has been changes in CEOs and executive
leadership, which has caused multiple inconsistent strategic
choices and frankly some significant executional miscues,"
Whitman told investors at an annual conference in San Francisco.
"This is important because as a result it is going to take
longer to right this ship than any of us would like," she added.
The largest U.S. technology company by revenue is trying to
transform itself into a major enterprise computing provider,
while slashing expenses to boost the bottom line.
The company is laying off 29,000 employees over the next two
years, has written off $10.8 billion that was mostly related to
the writedown of its EDS services business, and its business
continues to be hit by a slowing in corporate spending and
personal computer demand worldwide.
Whitman vowed to reduce the number of product offerings and
cut costs as it tries to recover in a worsening macro-economic
environment. She has said it will take five years for the
turnaround to be effective.
"All of this is fixable but it is going to take some time,"
The company's recovery will start becoming visible in fiscal
2014 with all of the current investments paying off, she said.
"FY 15 will be the year of acceleration," Whitman said.
"Revenues should be growing faster than cost."