New HP CEO: decision on PC spin-off by year's end

UPDATE SEPT 24:  New HP CEO Meg Whitman has told CNBC she support's her predecessor's plan to consider spinning-off the company's PC division.

However, Ms Whitman said speculation over the unit's future was hurting HP sales.

The assessment process would be accelerated, and a decision on a spin-off made by the end of this year, Ms Whitman told the US broadcaster.

UPDATE SEPT 23:  HP has offcially announced that Meg Whitman as its new president and chief executive.

The company said the move was effective immediately.  Executive chairman of the board Ray Lane said HP was at a critical moment and that Ms Whitman was a "technology visionary."

"We are at a critical moment and we need renewed leadership to successfully implement our strategy and take advantage of the market opportunities ahead."

Mr Lane said on behalf of the board that HP appreciated Mr Apotheker's efforts since his appointment last year.

"The board believes that the job of the HP CEO now requires additional attributes to successfully execute on the company’s strategy. Meg Whitman has the right operational and communication skills and leadership abilities to deliver improved execution and financial performance."

Although male CEOs dominate in corporate America, Ms Whitman becomes HP's second female chief executive after Carly Fiorina, who led the company between 1999 and 2005.

HP shares (NYSE: HPQ) closed down 5.9% but recovered all of the lost to post a 1.18% gain in after-hours trading as Ms Whitman's appointment was announced.

Sept 22: Hewlett Packard is reportedly laying off up to 525 employees as it shuts down its webOS division.

The company announced major changes in August, including the possibility of spinning off its PC business and the discontinuation of its webOS division, specifically the TouchPad, recently released in New Zealand.

The Wall  Street Journal’s All Things Digital has reported that sources close to HP say the company plans to lay off up to 525 employees, starting this week.

The company confirmed lay offs in the webOS division, the Journal reported, but not a specific number.

The Journal also reported that HP’s board are considering removing chief executive Leo Apotheker, according to people briefed on the matter.

Mr Apotheker has been with HP for 11 months and could receive $35 million in compensation, the Journal said.

Former eBay chief Meg Whitman is a possible candidate as interim chief executive, the Journal said. Ms Whitman, a Republican, has been active in poltiics since leaving eBay. In 2009, she stood unsuccessfully for govenor of California. She is currently on the finance team for Mitt Romney, a leading contender in the Republican Party's presidential primary.

HP announced last week it was axing plans to build a $60 million data centre in Tuakau, and would instead refurbish its Auckland centre.

NBR is seeking comment from HP.