Apotheker out, Whitman and Lane in at HP

The rumours were true

It's official: Léo Apotheker has been shown the door at HP after just a year at the top, with the company looking to ex-eBayer Meg Whitman to lead it forward as it attempts a reinvention away from consumer products and towards high-margin enterprise software.

The fact that Apotheker was on the way out was no secret: details leaked yesterday that former eBay boss Whitman was in line to replace him, at least in an interim role. Interestingly, however, Apotheker describes his departure as a 'resignation' - which is certainly not what we're hearing from those close to the company.

"This afternoon, HP issued a press release announcing my resignation as president and CEO," Apotheker told staff in a final email to all employees. Describing Whitman - who has been a member of HP's board for the past eight months - as a "technology visionary with a proven track record of execution," Apotheker assured staff that HP was in safe hands.

"Meg will be supported by a broad and deep management team, and I have the utmost confidence that HP will succeed in executing its strategic evolution," Apotheker claimed. Thanking staff for their dedication, Apotheker added that "it has been a tremendous honour and a pleasure to work with you here at HP."

Apotheker's 'I-was-not-pushed-I-jumped' missive was immediately followed by a joint all-staff email from newly appointed chief executive Whitman and executive chairman Ray Lane, promising that HP has an assured future even as it haemorrhages money.

"First let us say that we are true believers in the future of HP," wrote Whitman. "We have always had enormous respect for HP and its well-earned iconic status as one of the most important technology companies in the world.

"We believe in HP’s strategy," Whitman claimed in the internal email, "and we are confident that together, with renewed focus and energy, we will deliver on our priorities for our stockholders, customers and other stakeholders. We believe we all understand that we have a lot of hard work ahead of us," she added in warning to those who had hoped a change of boss would mean a clearer strategy.

"A top priority for us will be to refocus the energy of the organisation on our mission and on the performance necessary to accomplish it," Whitman added. "We need you to be the ambassadors of HP and work both collaboratively and effectively to usher HP into the future. To reach that goal, we need your best work and a focus on execution."

Whitman's appointment doesn't appear to have done much to reassure investors as to HP's future: analysts have been near-universal in their derision at the move, describing HP as a company in 'disarray,' while its share price has dropped nearly five per cent on the news, wiping out the gains it made in trading on Wednesday.

With confusion mounting over HP's plans to spin off its personal computer business in order to better focus on enterprise products, and its continued desire to produce and distribute cut-price TouchPad tablets on which it makes a massive loss, Whitman looks to have a tough time ahead of her to get the company back on track.

The two emails can be read in full over on page two.