Autonomy boss Mike Lynch, who joined the company last year when his business was acquired for $10.2bn, is among the more high profile names heading for the exit after HP announced plans to slash 27,000 jobs over the next two years.
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Lynch's departure means that the bulk of Autonomy's pre-acquisition senior management team, including its CFO, Steve Chamberlain, CMO, Nicole Eagan and COO, Andy Kanter have left the firm, amid talk of a serious culture clash between Autonomy and HP.
On a conference call marking HP's second quarter results, CEO Meg Whitman said Autonomy had had a "very disappointing license revenue quarter" with significant declines resulting in a shortfall.
Taking analyst questions, Whitman said Autonomy had no problems with its product or competitors, but said she saw a "classic entrepreneurial scaling challange."
"When you try to go from $40m to $400m to $1bn to $2bn, it's a whole different ballgame. And we need to put in some sales ops processes, we need to put in better interface into HP in terms of how Autonomy interfaces with our Services business as well as our Server, Storage and Networking buusiness, and we need a new organisational structure to support a $1bn-plus company," she said.
Despite the problems that dogged Autonomy during the quarter, Whitman reaffirmed HP's commitment to the unit, saying the opportunity its products presented around big data and analytics was "fantastic" and "it can flow right across all of our businesses."
Bill Veghte, CSO and EVP of software, will be parachuted in to take charge when Lynch departs at the end of a transition period.
Conference call transcript courtesy: Seeking Alpha