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Article

Title: Take a look at HP

Author: Lashinsky, Adam Article Type: Company
Source: FORTUNE, v151 n12 p117(3) Publication Date: Jun 13, 2005
  ISSN: 0015-8259
  Illustrations: Graphs
URL of Publication: http://www.fortune.com

New Hewlett-Packard CEO Mark Hurd offers a contrast to outgoing HP executive Carly Fiona, promising what many HP board members sought: a detail-oriented manager with the ability to turn a company around through hard work and diligence. The situation at HP was challenging. Some analysts contend that HP is seriously undervalued, pointing out that its entire stock valuation is based on the success of its market-leading printer and printer accessory business. Hurd will initially offer a round of layoffs in a serious effort to contain costs, and 5% to 10% of the HP workforce may be impacted. This move is expected to gain HP a market valuation increase ranging from 21 cents to 42 cents a share. Another goal of Hurd's is to improve IT functions at HP in order to reduce the per-employee spending levels from their current high levels of $18,500. Finally, Hurd must devise a means for HP to challenge its competitors, notably IBM, in the vital arena of IT services.

Special Features: Graphs

Companies:
Hewlett-Packard (HP) Co

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