HP declared that they will be shuffling executives in charge of their company’s services as well as taking an $8 billion charge with regard to the services segment.
Furthermore, they are expecting to take a pre-tax charge of between $1.5 billion to $1.7 billion in the third quarter to assist employees that have planned to take early retirement packages.
John Visentin has elected to stop work with HP as the head of their enterprise services unit to pursue other interests, motivating the company to promote Mike Nefkens to discharge his spot on an acting basis.
however, Jean-Jacques Charhon was again appointed to chief operating officer for the division and will report directly to Nefkens. HP told in a statement that the steps were done to assist service innovation, profits and customer satisfaction.
On the financial side, HP is writing down $8 billion in goodwill relating to enterprise business. The company realized that stock price and market situations led to the decision to do so. Third quarter profits, however, will be $1 per share, up from the 94 cents to 97 cents per share evaluated.
Abhey Lamba from Mizuho Equity Research thinks that restructuring in services will be a several years task that will persistent to impact the division’s outcome in the short term. Brian Marshall from ISI Group felt in a report today that the executive alterations shows HP’s efforts to streamline the company and rejuvenate the services business.