Mark Hurd

Hewlett-Packard announced this afternoon that Chief Executive Mark Hurd is resigning, effective immediately, after an investigation into a sexual harassment claim by a former HP contractor.

It's a shocker of a shakeup for the technology company, which counts Microsoft and others in the Seattle region as key strategic partners. One of the world's largest computer makers, HP has emerged as a potentially pivotal player in the market for mobile phones with its acquisition of Palm and its WebOS software.

Hurd has been credited with bringing new focus to Hewlett-Packard's business following the ouster of Carly Fiorina as the company's CEO five years ago. He will be replaced by HP CFO Cathie Lesjak on an interim basis, while a committee of the HP board works to identify and select a new CEO and board chairman.

Here's the statement released by Hurd as part of the company's announcement.

“As the investigation progressed, I realized there were instances in which I did not live up to the standards and principles of trust, respect and integrity that I have espoused at HP and which have guided me throughout my career. After a number of discussions with members of the board, I will move aside and the board will search for new leadership. This is a painful decision for me to make after five years at HP, but I believe it would be difficult for me to continue as an effective leader at HP and I believe this is the only decision the board and I could make at this time. I want to stress that this in no way reflects on the operating performance or financial integrity of HP.”

Coverage elsewhere: GigaOM, CNet News.com, New York Times.

Update, 3:35 p.m.: Redmond-based Denali Advanced Integration, one of HP's key partners in the Seattle region, released this statement from its founder and CEO, Majdi Daher.

“We are saddened by the news of Mark Hurd’s departure but confident in the leadership team that remains at HP. HP has a global reach with tremendous portfolio of products and services that enables partner like Denali to continue to grow and win with HP. Mark is a tremendous leader who built a sustainable and growing enterprise. We are confident in the scale, overall financial and portfolio strength of HP and most importantly the tremendous talent and executive leadership to continue to keep HP a dominate Global technology company.”

Update, 4:50 p.m. Here's an SEC filing with details on Hurd's severance which includes a $12.2 million cash payment in addition to stock and stock options. Business Insider says the total will be around $50 million.

The New York Times reports that Hurd's downfall was the discovery of inaccurate expense reports covering payments to the woman at the center of the investigation.

Follow-up: Employee regard for Hurd low before HP scandal, reviews show