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Hewlett-Packard CEO Meg Whitman on the company’s job cuts and the outlook for pc demand.
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Welcome back everybody.
For CEOs in eight years an industry that's and a total state of flux that -- charged with turning around one of the world's largest technology companies.
-- want that job well bid Whitman formerly ran eBay then ran for California governor didn't win it was the one who said.
-- -- Just days -- from one year anniversary where she is right now with Hewlett-Packard and turnaround plan joining us explicitly on Fox Business thank you for being thank you thank you for coming HP about our pleasure you know we can't ignore what's going on with the markets here in the Federal Reserve as a business person what do you make of this.
Massive bond -- move the market likes it -- Packard's stock likes it.
-- so we are all facing the economic headwinds of a very tough economy in the United States.
And so if this is going to help the economy get going I think were all open to any number of initiatives that we'll get this economy going because we have been in the longest standing recession since the Great Depression.
And our business your business and in everyone's business needs.
An economic boost well he put in assurances basically would you agree with.
You know I haven't studied this -- just like breaking news I haven't studied everything and he said but listen I think we're all for.
You know business people government joining together to say you know what.
We have to have a different approach here we've got to get this economy going because average Americans are really hurting out there and when the consumer is weak.
They don't buy from businesses therefore businesses are -- therefore they don't hire -- -- of a consumer driven company country.
And so the consumers -- have some confidence here so you know.
Helping the housing market certainly couldn't hurt OK at a consumer driven company to -- Hewlett-Packard you -- just days away from your one year anniversary.
Cutting -- it's going.
I think we're making real progress I mean this is a company that has.
Had you know -- CE.
Curve to for years.
But we're making real -- real progress and I'll tell you there's a couple of myths about HP one was people told me innovation is dead at HP.
Could not be farther than that from the truth.
Innovations everywhere at this company what we have to get better action is bringing that innovation to market making it understandable to customers so that they can buy our products you had said that this could be a four year restructuring process.
Where are we and that process is always 20% of -- four years 30% and to three years can now give us some gardens there.
I said I thought this was a four to five year turnaround just to get HP humming the way a company of our stature inherited should be running.
And were a year and so I have to say you know if you take the long view five years there were 20% of the way through.
And that feels about right to me we've made a lot of progress on innovation of -- we've made a lot of progress on winning back the hearts and minds of employees.
We are out with customers every day to reassure them that HP is the company they have always know.
What we need.
Quality and executing against what is.
-- Monday.
You announced another 2000 in job cuts OK on top of 27000.
And job else.
Before it now -- 127000.
Job cuts some analysts said wait a minute shouldn't be more.
Then you out of the 2000 can you just give us a sense.
Is this it or will we see more over the next three years.
My sense is -- vice.
Here today we are done.
But you never know what's gonna happen to the business so you know I can give you my best guess sitting here today.
And the -- says we have to create the financial capability and capacity to invest in innovation innovation is the lifeblood of a technology company.
I want to invest in innovation and I want to bring it to market faster.
And we have to invest in our people and we have to take advantage of some of the biggest transitions in technology since I've been a technology executive this move to the cloud.
I think it is that big a move.
For as the client server environment was to the web.
And as you know I ran a company that took an enormous advantage of a big change in an underlying technology options for company -- surprise that you said that the big shift in change and then mentioned the cloud vs.
The hardware gesture of -- which is we see PC numbers declining pretty dramatically yet.
Tablet numbers jump in -- 8% worldwide.
What's HP secret -- are you poised and -- -- we -- -- -- -- as the MDX tail but -- that it is that going to be at the piece of equipment that -- -- the attention of the consumer that's well remember we have a consumer business but we also have an enterprise business so I have to keep both those businesses in mind.
From the PC visit my view is the PC business is not -- I know that is what people say -- in the media it's not true I mean it may be slower growth that it was in the past.
But computing is here to stay the computing needs are gonna continue to grow and we wanna be the -- the company.
That really delivers the device that you want so you saw our tablet entry which is really a convertible so you get all the benefits of a PC but you can also unhinged the screen and watch a movie on it so it has the consume and share elements of -- tablet.
But if you need to do real work that you can do that -- so I I actually think we're gonna see consumers excited about this so we're betting big on the PC business.
We're also obviously very excited about our printing business we've got a whole new line up there.
And then the enterprise side we've got some very exciting things around delivering.
Services in the cloud to our biggest enterprise customers -- -- interesting for you to give that headline the PC isn't -- every business we just had a headline on that of -- -- -- something for somebody like Cuba but.
That's it -- we're expecting the PC business to grow just nine tenths of a percent up.
In this year and some analysts believe it will shrink next year how do you think it well.
You know I think it'll be a slow growth to flat business but we still shipped a PC -- two PCs every second at HP we are the biggest PC maker.
I have redefined.
PCs to not be PCs the personal devices.
How do we get the right device for you list whenever you whatever you need.
You know are you trying to read a book on line are you -- what you're trying to do I wanna have the device that is perfectly suited for your need at that time.
That's the direction -- taken the company so I'm I'm quite bullish on the personal device business.
