The company said the layoffs should save up to $3.5 billion, and Noland appeared willing to wait.
“[Whitman] is going to take these cost savings and invest in innovation, which points them in the right direction, but its going to take time — probably a couple years to see any real fundamental results,” he added.
HP is reducing the largest amount of workers in its 73-year history, and on Wednesday reported earnings and revenuebelow year-earlier levels. A transformation, by all accounts, will not be easy — especially when smartphone and cloud computing sales continue to make PCs look antiquated.
Noland suggest that HP consolidate: “Right now, as a partner or a customer to HP, you deal with different people to buy a server, software, services, or PCs. They need to bundle those together in a more elegant fashion.”
—By CNBC’s Jennifer Leigh Parker
Additional News: HP Beats on Earnings, Announces Layoffs
Additional Views: Whitman to CNBC: Revamping Just Beginning
CNBC Data Pages:
Noland does not personally own HP stock, but his firm, Robert W. Baird and/or its affiliates expect to receive or intend to seek investment banking related compensation from the company or companies mentioned in this report within the next three months.
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