Gerstner is well-known in American business for his turnaround at International Business Machines Corp. IBM -0.36% . In one of his first big moves, Gerstner and his right-hand man, CFO Jerry York, did a big round of job cuts within three months of joining IBM in 1993. But he also reinvested and built up the company’s now-massive services business.
H-P’s HPQ -3.21% Whitman has similar plans, and investors were giving her an initial thumbs up. She promises to eventually reinvest some of the $3 billion to $3.5 billion the company will save in innovation, research and development, as well as quality and design of products. She also plans to better streamline H-P’s business processes. Read more about H-P layoffs.