HP announced on Wednesday that the Silicon Valley company is reorganizing its enterprise services division with the departure of John Visentin who is being replaced by Senior VP Mike Nefkens, on an acting basis, who will report directly to CEO Meg Whitman.
The reorganization comes as the company announced it expects to “record a non-cash pre-tax charge against the impairment of goodwill” within its services segment, HP said in a press release. According to a report by the Associated Press, the charge and other accounting adjustments will lead to a loss of approximately $8.5 billion to $8.9 billion, the largest quarterly loss in HP’s 73-year history.
Earlier this year, the company transitioned out of its role as fiscal agent of the California Medicaid Management Information System after the incumbent, Electronic Data Systems owned by HP, did not win the 10-year, $1.6 billion renewal contract to process 800,000 provider claims daily at an average of $330 million in weekly payments to California recipients. According to a Department of Health Care Services press announcement, the system is now operated by Affiliated Computer Services, a Xerox company.
HP and its partners are among the largest suppliers of IT goods to the state of California with more than $400 million so far this year in sales of desktops, laptops, monitors, printers and other hardware, according to state purchasing records.
