EDS Chief Executive Rittenmeyer to retire

Friday brought more details of Hewlett-Packard's merger with computer services giant Electronic Data Systems.

EDS Chief Executive Ronald Rittenmeyer will retire effective December 31, HP said in a statement. Taking his place will be 46-year-old Joe Eazor, a current EDS senior vice president, who will report to Ann Livermore, head of HP's business technology unit. EDS will be folded into that group, HP noted.

Joe Eazor

(Credit: EDS)

HP announced plans in May to acquire EDS for $13.9 billion, and completed its acquisition in August. At the time, the word was that EDS would operate a new business unit, which would be called EDS, and that it would continue to be led by Rittenmeyer.

Rittenmeyer, who had reported to HP CEO Mark Hurd, joined EDS in 2005 and was named chairman and CEO in 2007. He played a key role in accelerating the company's transformation and subsequent integration within HP, Hurd said.

Eazor, for his part, was executive vice president of corporate strategy and business development at EDS prior to the acquisition. He also served as senior vice president of EDS Asia Pacific, with responsibility for more than 30,000 employees in the region including India, China, Japan, Korea, Southeast Asia, Australia, and New Zealand.

HP executives have said they bought EDS to expand HP's business beyond traditional computing and printers. HP has been trying to develop its software and services business over the last few years. EDS adds a service component that will help the company compete head-to-head with IBM.

In September, HP announced plans to cut 24,600 jobs over the next three years in the wake of its EDS purchase. In addition, a number of business publications reported Friday that HP is freezing worker salaries in a cost containment move. However, HP employees will still receive their year-end bonuses, the company said.

Rittenmeyer sent an email to EDS employees with the following...

"Importantly, EDS would retain the brand all of you have worked so hard to build over the last 45 years. EDS headquarters will remain in Plano and I plan to continue as chairman, president and CEO of this new business group."

So... I guess HP is showing their real plans now, initially was going to report to Hurd, now with Ann on the picture Rittenmeyer was forced out, I guess his MBA from Rockhurst University was not good enough for HP bio pages...

I they really want to go head to head with IBM, if they think they could pull that off they need the HP brand all over the place, so maintain EDS as "an HP company" was never an option, which means they lied about it from the beginning

[humanssssss]

HP is a lying and deceitful company. It is a company filled with executives who look to find ways to cheat consumers. From ink jet locking printer to not refunding money for consumer storage to overpriced storage servers.

[rcardona2k]

This is the story of any large acquisition: "maintain[ing] [acquiree] as 'an HP company' was never an option, which means they lied about it from the beginning"

Also: "[insert any large megacorp name here] is a lying and deceitful company. It is a company filled with executives who look to find ways to cheat consumers." The charter of the corporate is to make money for the shareholders. Consumers by definition are there for fleecing.

[pierre_normal]

Looks like Don Grantham got passed over. Rumor has it he was talking to Hurd about trying to bump Livermore out of her role... and it looks like Livermore had the last laugh for now. Watch out for Don, folks, he's a slippery one!

[robertdici]

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