She says they have taken out about half of the employees they are cutting – about 15,000 more cuts to go. She says the cost-cutting plan is going take about three years.
She says they have under invested in their own IT structure.
Asked about the restructuring savings, Whitman says some of that happened in the latest quarter. But it is back-end loaded, she says. “The big cost take out occurs in 2013,” she says.
On keeping the right people, but getting rid of the under performers and maintaining the culture: She says she needs people who wanted to be part of the journey. You have to have people who are in the boat, or out of of the boat, she says. She says it took a while for the organization to trust her, to trust that they had a strategy, and that the executives would work as one team. She says they need to communicate, communicate, communicate.
Getting hearts and minds of HP people is a necessary part of the process. She thinks they have done that.
lol.....'she says, "the *big cost take out occurs in 2013".......bigger than 8 billion?....yikes, are there more multi-million dollar write offs and cost reduction measure to come to achieve a 'multi-year' turnaround?.....sell!