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HP in $8bn writedown on services arm

Hewlett-Packard, the struggling US technology conglomerate, said it was taking an $8bn writedown related to the division dominated by the former EDS technology services group, which it bought for $14bn in 2008.

Meg Whitman, chief executive, is attempting to restructure the group after a turbulent two years in which HP has forced out two chief executives, veered between consumer and business-oriented strategies, and seen its share price slump.

The purchase last year of UK software company Autonomy angered Wall St. Ms Whitman oversaw the departure of Autonomy founder Mike Lynch from HP in May and it subsequently emerged that as many as a quarter of the UK company’s staff had quit after the acquisition, complaining about a stifling management culture at the US group.

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