HP’s Meg Whitman is cautiously optimistic that tech giant is stabilizing

Hewlett-Packard chief executive Meg Whitman said in a conference call with analysts that she is “cautiously optimistic” that the company’s financial results are stabilizing.

In a call with analysts, Whitman said, “I wouldn’t say we have turned the corner but we are making progress. We did what we said we were going to do” in terms of exceeding earnings and revenue targets in the second fiscal quarter.

HP beat earnings by 7 cents a share and has had good growth in some businesses. It grew 22 percent in software sales, but HP’s Autonony group, which HP bought for $10 billion last year, missed expectations. Autonomy’s founder will leave HP.

“We are creating the process to adapt to innovation and product leadership,” Whitman said. HP will take a $1.8 billion charge and it will reduce its work force by 27,000 jobs by October 2014. That will save $3 billion to $3.5 billion by the end of October 2014.

“We’re going after core cost bucket” by simplifying its marketing and sales practices, among other things, she said. HP will reinvest its savings across the business. But turning around the company will take some time, Whitman said.

blog comments powered by Disqus