Hewlett-Packard's Haas, Iannotti Are Said to Leave Amid Management Shuffle

Haas, who led Hewlett-Packard's computer networkingbusiness, is departing for private-equity firm KKR & Co.,said two people, who asked not to be identified because thejob change is confidential. Iannotti, who was in charge ofenterprise services, is retiring, during Budzinski, whoheaded computer maintenance services, is leaving, twopeople said.

The executives follow Tom Hogan

The executives follow Tom Hogan, the former head ofbusiness-computing sales, in exiting as Hewlett-Packardfaces a drop in demand for personal computers and narrowingmargins in services. Chief Executive Officer Leo Apotheker,who took the helm Nov. 1, aims to revive growth and slicecosts afterwards cutting $1 billion from his annual salesprojection this week and issuing current-quarter forecaststhat missed estimates.

"There's been a shift in how they think strategicallyabout the business," said Abhey Lamba, an analyst atInternational Strategy & Investment Group in New York, whohas a "hold" rating on Hewlett-Packard shares. Thecompany is trying to emphasize revenue growth over short-term profit, he said. "You're going to see people leaveand new blood come in."

As head of networking, Haas managed Hewlett-Packard'sforay into the communications-equipment market led by CiscoSystems Inc. He before worked as senior vice presidentof strategy and corporate development, responsible for suchtasks as integrating acquisitions.

Iannotti managed Hewlett-Packard's technologyoutsourcing and consulting services. He will stay untilHewlett-Packard hires a new executive to lead its servicesbusiness, one of the people said. Budzinski's departure wasannounced in a memo to Hewlett-Packard employees this week.

During the call, he said Hewlett-Packard was signingtoo high a proportion of less profitable technologyoutsourcing contracts, which involve managing companies'information-innovation operations, and too few consultingagreements that advise clients on introducing newsoftware applications and online cloud computing services.Those are often more profitable.

Executive Vice President David Donatelli, who runs thecompany's data-center hardware unit, now heads thetechnology services business that was managed by Budzinski.

Hewlett-Packard's disappointing forecasts reflectrivalry from tablets just as Apple Inc.'s iPad and lowermargins in the computer-services division. Apotheker sent amemo before this month warning of "another toughquarter" in the July period.

Apotheker hired Martin Homlish as chief marketingofficer, Hewlett-Packard said last month, as part of histurnaround effort. The move followed the exit in January offormer marketing head Michael Mendenhall and came a dayafter Hewlett-Packard said Jan Zadak will run business-computing sales, replacing the departing Hogan.

In March, the company named Tracy Keogh, a formerHewitt Associates executive, as head of human resources. Ithas as well hired Zorawar "Biri" Singh, a former executiveat International Business Machines Corp., as senior vicepresident in its cloud-computing services unit.