Hewlett-Packard Co replaced Dave Donatelli with Bill Veghte at the helm of its second-largest business division on Wednesday, reassigning the star executive to a new role identifying potential tech acquisitions as it reported a larger-than-expected 8 percent slide in third-quarter revenue.
The world's largest personal computer maker recorded revenue of $27.2 billion in the fiscal third quarter, down from $29.7 billion a year earlier, as PC sales continued to slide and its enterprise computing business grappled with tepid worldwide IT spending.
It missed the $27.3 billion that Wall Street had expected, on average.
Donatelli, a rising star that Wall Street analysts once considered a candidate for a tech CEO position, relinquishes his post as chief of the Enterprise Group. He will now focus on identifying early-stage technologies for investment, the company said.
Veghte, HP's chief operating officer, takes over effective immediately.
Shares in the company slid more than 2 percent to $24.87 in after hours trade, from a close of $25.38 on the New York Stock Exchange.