open. and then there's europe. markets on the rise despite a bunch of bearish economic indicators. german climate sentiment. but still hope they may piece together some band-aids with regard to the summit last night. guys, just a touch on mark briefly. part wanted to start saying live from the financial capital of the world as he did up until a year ago today. >> many of us got our start because of mark. i used to be opinionated. and i sent him e-mail after e-mail saying you don't know this, this is wrong. one day he says listen big boy, get your big butt over here. at that point we were at ft. lee. let's see how you do against me. of course once you got there i was trembling scared to death. please don't hurt me. and he was a titan. i want everyone to know the intimidation factor came from the fact we knew who he was working for which was you. >> we ask the tough questions to anybody who appears on our air. it is in the spirit of mark haines who always challenged the person he was talking to. it didn't matter who you are. he always had that. he wanted to get the tough questions out there. he wanted to get the answers for the investor. >> probably no one worked with him closer than you did. >> and i miss him every day. i think it's a tribute to him a year after his death a day doesn't pass that i don't get a tweet or an e-mail saying either mark would have loved that question or, you know, mark would have been proud, or want to remember how tough haines was and get it together. people have not forgotten him in any way for a very good reason. >> he certainly would have loved the news flow today. >> definitely. we should start off we the news flow. we have got to kick it off with hewlett-packa hewlett-packard. as a result the computer maker says it expects $3 billion in annual savings. hp also reporting better than expected fiscal quarter results. but short of wall street forecasts. we'll hear from ceo meg whitman in just moments from now. it is important to understand what they're using the cost savings for. that's what analysts were focused on. prior to the quarter for big data, the growth areas they have to reinvest in order to reinvigorate the business. >> so many analysts on the call last night trying to figure out their numbers. how much of -- you say while a majority of the savings are going to be reinvested, what's the majority? they're all trying to get to a number. hewlett-packard still pointing even though this kusht quarter they came in on guidance. 27,000 jobs, 8% of the workforce. gives you a reminder of how enormous this company is. >> the bonds have been trading down. behind the scenes a lot of people recognize the corporate market was saying maybe we shouldn't be giving hewlett-packard credit. they've got gigantic needs for credit. i think that stabilization to the bonds is going to matter tremendously. the analysts are strained. if you can stop the bleeding and the corporate bond rate goes back up, then she's won. >> calls it a balance sheet story. growth is going to be so tough to come by. maybe they move more on cuts, on efficiency. on a bit of pricing. but certainly not on sheer growth. >> no. they still don't have growth. and when you look at it, revenue being even flat in pcs is considered a positive. we're not talking about growth for any of these businesses other than autonomy where they had issues and replaced the person running autonomy. >> i think they should write off autonomy some day. >> i don't think so. meg, we may ask her about it. but she was talking about on the call and hi a conversation with her that entrepreneurial companies only get so far. now it's bigger. they need somebody else to manage it. >> dell versus hewlett-packard makes me feel dell -- >> has real problems. yes. if hewlett-packard can show pc growth and dell cannot, you'll have to wonder what accounts for that. >> when the pc business -- jim, it wasn't that bad. it was pretty good. >> no pc server stable. printers weren't that good, but printers have been tough. i think people got short hewlett-packard. they made no excuses. they were pretty straightforward. they didn't say the fault was in our stars. they said the fault in s in ourselves. >> let's get to it. in fact, lady of the hour so to speak, meg whitman, ceo of hewlett-packard joins us now. good morning to you. thanks for getting up. you're always up this early, i know. >> thank you. happy to be here. >> let's start off on the pc business. it was a better than some anticipated. particularly with dell's poor performance, did hp take the share. >> we will understand in a month or two but we feel good about that business. the team feels good coming back from the summer announce tmt we may spin off that to 100% committed to the pc business. we have a terrific product lineup for the back to school. >> do you anticipate that will continue? when we talk briefly about your decision to bring guidance down a bit for this current quarter, you said to me you're concerned about macro economic uncertainty and the change the company's going through particularly given you're going to va lot of people living the company. is macroeconomic uncertainty that big a problem? >> it's a combination of things. certainly we're worried about what's going on in europe, but we're turning around a very big company with five major lines of business. we're introducing a lot of change which is absolutely necessary to turn hp around. but my view is we say what we mean, mean what we say. we want to give guidance that took into account of the landscape we see over the next few months. i feel good on the guidance. this is the beginning of a turnaround. my experience in turnarounds is they are not always linear. things don't always go to the right. there are steps forward and steps backwards. i wanted to be realistic about the guidance. >> in terms of the turnaround themselves, you mentioned it's not linear. how far along do you really think you are if you had to tell us? 10%, 20% of the way if. >> i'd say we're at the beginning. 10% to 15% there. we laid a lot of ground work. we va clear focused strategy for the company and our operating groups. there's a tremendous number of people in many geographies. so we have to be deliberate, thoughtful and execute. >> and executing, people are looking at the printing side of the business saying perhaps there was a lack of execution there. revenue's down 10%. it was not a great quarter for your overall revenue number. are you executing there or are there things that have not done well? >> we're not proud of our performance in that business. i personally have spent a lot of time focusing on strategy of that business which is three businesses. ink jet, laserjet, and graphics businesses. we got a great plan going forward. we got to act like the category leader that we are. we have to make sure our pricing is right, advertising is right, and product is right. on the laserjet side we had some gaps in the product. we're not as strong as we should have been. we're coming to market with eight printers this fall that i think will change the trajectory there. on the ink. business we've got a couple of different business models. and by the way, the printer business is going to benefit from the pc global footprint in emerging markets. we put this business together with the pc business. and there's a lot of synergies out of that. >> meg, jim cramer. thanks for coming on the show. good to see you. turning to services, revenues were essentially flat year over year. but s.a.p., one b of your competitors is indicating much higher growth. one of ou predecessors indicated to me this is where the growth is going to come from. how are you going to get that growth back given up a the layoffs you're doing? >> our services business as i said from the beginning is a turnaround business. and what we have to do is migrate away from some of our lower growth businesses and build practices in the areas that are high growth. practice around the implementation of cloud for our customers. security, big data analytics, so we are in a transition from a lower growth segment of that business to where we want to be in two, three, four years. when mark purchased eds, it was known for participating in the lower margin/growth areas. and we've got a migration we've got to do. they've got a plan and i feel confident we're going to be able to execute against that. it will take a few years. >> and part of that plan as you broadcast it on the conference call yesterday is reinvest the savings from the layoffs to these higher growth areas. about a third of the savings will go to the bottom line. the other two-thirds will go to the investments of the businesses. is that an accurate estimation in terms of what kwloul use the savings for and in terms of investing these growth areas, do you see simple straightforward investment or bolt on ak sig acquisiti acquisiti acquisition? >> we have set a majority into the business. and the reason we haven't given more clarity is we are still refining the most important investment opportunities, how much we want to spend over what period of time. and what big companies tend to do is peanut butter those investments. they give a little to everybody. we're not going to do that. we're going to make a small number of very big bet psychosis we funded eed adequately. but we are going to invest in tools for our people to be more productive. we're going to invest in marketing and some other areas to rejuvenate some of these businesses. so that's the current plan. it become clearer over the next couple months exactly how much will flow to the bottom line. >> people might not disagree with the necessity of layoffs, but having to spend a bit of time in silicon valley last week, the competition for talent in leadership positions is fierce. you have a lot of smart rivals in that part of the country. why would i want to go to hp? how could you sell me on a job given a turnaround is just 10% on? >> yeah. so hp is one of the great companies of silicon valley. we have offices all over the united states and the world. if you're interesting red in working in the enterprise space? servers, storage, networking, computers or software, we're one of the greatest places to work. we have enormous innovation, great history, great people. and we're on the move. this is one of those organizations you can join to help turn around one of the great silicon valley icons. important to california, important to the country and the world. so we compete well for talent. it's a different kind of person who might join a facebook or a linked in than someone who joins hp. we do things that are extraordinarily challenging to do with big governments. for example, a big part of our technology runs the united states navy, we do a lot of technology that runs the department of public works and pensions in britain. so we do things that are quite different at a different scale. and it's very exciting to be here. i can tell you i've been on both sides of this. i was at ebay many years. now of course at hp. i wouldn't trade my job for anything. >> meg, of course it's exciting to be at a growth company as well. and hewlett-packard is not that at this point. >> you're right. >> most of your revenue numbers are still percentagewise headed down. at what point do you feel like you're going to have really crossed that key point where revenue growth is going to be across the board for this company? >> yeah. so i think in 2013 we ought to start to be able to grow this company again. but i want to be clear, because i think four of our businesses will start to grow at the end of this year or 2013. our services business, what may well be a smaller but more profitable business. because services is roughly a $26 billion business, that might keep the overall company from growing, but what i hope to see is four out of our five businesses growing the top line in 2013. services as i said may be smaller but more profitable business. that would be the strategy we're executing against. that would be a good result for the services business. >> layoffs, do there need to be more? some would say 8% simply not enough for a company as large as hewlett-packard. >> i don't believe so, david. we're undertaking a huge change for hewlett-packard. you try to go in the organization and decide what we're going to invest in, emphasize, how many people we need to do that. how we need the processes to be more effective and efficient. and you come up with a bottoms up number. we didn't start with a number. we said how can we do this efficiently and effectively? and how much change can they accept over a period of time. right now i feel we've got that balance about right. you never quite know. we're pushing hard. we've got to make these investments. technology is changing rapidly. at the same time we've got an enormous organization. so you have to pace in sequence. i feel good about that pace in sequencing right now. that doesn't yield to analysis. that is almost a gut decision of have you pushed hard enough but not so hard it starts to be dysfunctional. >> apple, elephant in the room. apple taking share with ipad. we know that from michael dell's call. apple taking share with mobile. mark hurd explained to me the idea of palm. you're going to be able to dominate mobile. he also talked about the tablet. tablet now gone. mobile i don't see. how can you have a growth company without mobile and without tablet? >> yeah. well, certainly on the consumer side, apple is doing very well. we actually have done well on the commercial side. in fact, this quarter we took the number one share position in the united states in the commercial sector from our competitor who has held that position for nearly a decade. but listen, apple's a very tough competitor. that's why you see our pc, laptop, desk top workstations designs taking a new position and really being state of the art. we are introducing a tablet for back to school. a windows 8 tablet. we have to be in mobility. we're making early steps there but we have not decided on the smart phone strategy. we've decided on a tablet strategy. we've got work to do there. >> finally your most immediate predecessor bought a company called autonomy. revenue was zpoipting. you replaced the ceo. those would question the future for them and say perhaps this is not going to work out. what do you answer? >> so, i'm a believer on autonomy. when i look at what happened in q 2, it was not the product. great product. it was not the market. there's tremendous demand. and it was not competition that took deals we should have had. it was execution to close the big deals that had been brought by hp and the team, you know, had struggled if you will in terms of executing. this isn't entirely unfamiliar to me. i've watched a number of companies, led a company that went from $4 million. you have to put in process and discipline that is often at odds with the culture. that's the position we find ourselves in with autonomy. great product. no real market problems that i can see. so i'm a believer. now we just got to go help this company grow up to the next stage. and that's why i decided we needed new leadership and a slightly different organization. >> well, meg, as always we appreciate your spending time with us. thank you. >> thank you. nice to see you all. >> meg whitman, ceo of hewlett-packard. >> david, confident, expectations dramatically lowered. no hype versus ron johnson jcpenney. is this not only a new hewlett-packard but a meg whitman who is a grown up at a company that had nothing but teenagers running it. >> i don't know about that. >> well, they weren't the age. >> i think a couple of things we heard from meg this morning that i haven't nersly heard. 10% to 15% turnaround. it gives you a sense. she says on the conference call it's not going to be linear. there's a long way to go here. and there's probably a lot of risk and potentially a lot of reward when it comes to hewlett-packard. she's delivered on what she said. when he took over and said she was going to meet the numbers for the current quarter and did. and now they beat for the past quarter -- >> how do they eliminate the personal computer division six months ago. someone's doing something right there. >> exactly. these people thought they were going to be a separate company. not just bringing them back but getting everybody in line. it was impressive. you have to admit. especially what we've seen given dell. >> when she said that, your eyes lit up. >> you need tablet. michael dell said tablet is replacing laptop and notebook. >> i get that but aren't they too late? >> you know, it is the right question to ask, melissa. >> 38% of profits still come from printing, from ink. the old ink business. that is changing dramatically. but we got to keep a close eye on that also. down 10% revenues is not exactly a great performance. coming up next, a heavy hitter when it comes to your money. cramer is on mad dash. we head to the open on this thursday morning. an update across the board. more "squawk on the street" straight ahead. so we have ongoing webinars and interactive learning, plus, in-branch seminars at over 500 locations, where our dedicated support teams help you know more so your money can do more. 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