Whitman quits as head of HPE

Whitman quits as head of HPE

Whitman quits as head of HPE

While storage revenue was up by 5% due to contribution from the Nimble acquisition, Hewlett Packard cited sales execution challenges with its 3Par product line in U.S. On the upside, networking grew at a very healthy 21% year-over-year rate thanks to Aruba.

Meg Whitman, who oversaw the breakup of one of Silicon Valley's pioneering companies, is stepping down as CEO of Hewlett Packard Enterprise Co. She will be succeeded on Feb 1 by president Antonio Neri. As Hewlett Packard Enterprise exits its low-margin, high-volume Microsoft contract, the firm expects a negative impact on the top line to linger well into fiscal 2019 and possibly early 2020.

"We are surprised by the timing of the CEO transition given commentary at the recent analyst day that seemed to imply a CEO transition was not in the offing", BMO Capital Markets analyst Tim Long said in a research note. She had then refuted these claims saying that she meant to stay with Hewlett Packard Enterprise Co.

The company didn't say what Whitman's next plans were. She supported Mitt Romney's presidential campaign and unsuccessfully ran for governor of California herself in 2010.

"I'm incredibly proud of all we've accomplished since I joined HP in 2011", Whitman said in a statement. "And when I said that, Antonio was exactly the kind of insider I had in mind".

Her resignation comes just two months after Whitman promised she was "not going anywhere". And she ruled out working for a competitor.

Over the summer, Whitman was reportedly on the short list for the CEO role at Uber, after cofounder and CEO Travis Kalanick was forced to resign by the company's board. This included, as Whitman detailed in an analysts' call, "several complex deals like HPE spinning off its software business to United Kingdom IT company Micro Focus, and spinning off and merging its IT services business with IT company Computer Sciences, thus creating a new company called DXC Technology". Following the completion of the transaction, the chief executive officer now directly owns 1,016,622 shares in the company, valued at approximately $13,897,222.74. In only three of those cases was she replaced by another woman. We've got strategy that's crystal clear and focused.

Related news

[an error occurred while processing the directive]