it could all help ceo meg whitman make more. a restructuring cost estimated at $3.6 billion in 2012 has balooned to $1 billion more. 29,000 layoffs, $50,000. what is restructuring? structuring is the cost of building a business. you have a new idea and you hire someone to build it. maybe it is awesome. but maybe it becomes obsolete or it failed. you shut down the project. and lay off someone. that is business, right? when a company restructures, it suggests that laying off someone and shutting down the project is one time. that is how the accounting works. sales go up here. costs goes right here. the restructuring goes down here. that is the bottom line. the more cost the company can move from here down to here, the bigger the adjusted profit. then there is a bonus question. in the last three years, meg whitman has received $50 million. a $4 million bonus last year. hp has seen 11 quarters of shrinking sales. net profits fell. restructuring will cost 50,000 people their jobs. you wonder, how did the company seeking to cut costs

it could all help ceo meg whitman make more. a restructuring cost estimated --half billion in 2012 $1 billion more. 29,000 layoffs, $50,000. what is restructuring? structuring is the cost of building a business. you have a new idea and you hire someone to build it. maybe it is awesome. but maybe it becomes obsolete or it is failed. you shut down the project. and lay off someone. that is business, right? when a company restructures, it suggests that laying off someone and shutting down the project is one time. that is how the accounting works. sales go up here. costs goes right here. the restructuring goes down here. that is the bottom line. more cost the company can move from here down to here, the bigger the adjusted profit. then there is a bonus question. in the last three years, meg whitman has received $50 million. a $4 million bonus last year. hp has seen 11 quarters of shrinking sales. restructuring will cost 50,000 people their jobs. you wonder, how did the company seeking to cut costs raise bonuses? filings, ap's s.e.c.

visit meg whitman make more money the more it she restructures? pay.t boosts here is a cory johnson found. isthe one-timer structuring going to take more time with more layoffs and it could all help meg whitman make more. attructuring cost estimated three point $6 billion in 2012 4.1 billiond to dollars, half a billion dollars more and 29,000 layoffs turned into 50,000. what is restructuring? let's take a look at business as usual. you have a new idea. you hire somebody to build it. maybe it becomes obsolete. maybe it fails. you shut down the project. it suggests the shutting down of the project and the laying off of the someone really does not count. that is how the accounting works. up, but the restructuring goes down here. that is the bottom line. that is what the shareholders get. the more cost the company to move from here down to hear, the bigger adjusted profit. then there is the bonus question. meg whitman has received $50 million, a $4 million bonus last year. hewlett-packard has seen 11 quarters of shrinking sales. net profits fall, losi

that is boosting the pay of ceo meg whitman. we will show you the interesting math on "bloomberg west." ♪ >> welcome back to the best of "bloomberg west." i am cory johnson. why does hewlett-packard keep laying off more people? is it possible that meg whitman makes more money the more people she restructures out of a job? let's look at the layoffs boosting executive pay and hp. >> hewlett-packard has a one-time restructuring. they have more layoffs. this helps meg whitman make more. a restructuring costs at $3.6 billion has ballooned. that is half $1 billion more. that is about to hit 50,000 layoffs. let's take a look at businesses. the structure is a cost of building a business. if you hire somebody to build it. maybe it becomes obsolete and stale. you shut down the project and you lay off somebody. restructuring suggest the shutting down of a project is a one-time in nature. that is how the accounting works. sales go up. the restructuring goes down here. that is the bottom line. that is what the shareholders get. a the more

that is boosting the pay of ceo meg whitman. we will show you the interesting math on "bloomberg west." ♪ >> welcome back to the best of "bloomberg west." i am cory johnson. why does hewlett-packard keep laying off more people? is it possible that meg whitman makes more money the more people she restructures out of a job? let's look at the layoffs boosting executive pay and hp. >> hewlett-packard has a one-time restructuring. more layoffs. this helps meg whitman make more. a restructuring cost estimated at $3.6 billion has ballooned. that is a half a billion more. that is about to hit 50,000 layoffs. let's take a look at businesses. "structuring." the structure is a cost of building a business. if you hire somebody to build it. maybe it is awesome. maybe it becomes obsolete and stale. you shut down the project and you lay off somebody. that's business, right? restructuring suggests the shutting down of a project is a one-time in nature. that is how the accounting works. sales go up. the restructuring goes down here. that is th

it could all help ceo meg whitman. a restructuring cost estimate balloonedbillion has to $4.1 billion. that is half $1 billion more. .nd 20,000 layoffs structuring is the cost of building a business. you hire someone to build it. maybe someone -- it is awesome. so you shut on the project come you lay off the dumb one. that is business, right? only the company restructures, it suggests the shutting them of the project and the laying off. that is how the accounting works. sales go up. restructuring goes down here. that is the bottom line. the non-gap profit is unaffected. the more costs of the company have moved from here down to hear, the bigger the adjusted profit. then there's the bonus question. in the last three years, meg whitman has received $50 million hewlett-packard. hewlett-packard has seen met -- and net profits fall. restructuring will cost 50,000 people their jobs. you wonder, how does a company seeking to cut cost raise bonuses? buried in hp is a lot to note. a quarter of for annual -- the bottom line is n

if you look back, not only have they taken restructuring during every single quarter that meg whitman has been ceo, restructuring of all the way back to the first quarter of 2008. in everything one of those quarters, 20 four quarters, the company has had some sort of restructuring charge. >> what are we blaming meg here for? she is the one who has it in her contract that she should be compensated. it is not her fault. hp is the one who agreed to these terms. >> absolutely. she decided she wants to be paid whether people get laid off or the restructuring continued, indeed, if the restructuring it's even worse, she could end up getting paid more. certainly the bonus pool, non-gaap, or quote unquote bottom line, which is not a bottom line at all. she was able to negotiate a deal other people have as well. one of the remarkable things of how much the company restructures. analysts really scratching their heads at the last quarter thing we do not understand -- you keep saying that business is improving, but restructuring is going on longer, costing more, and costing more people their jobs.

that is boosting the pay of ceo meg whitman. we will show you the interesting math on "bloomberg west." ♪ >> welcome back to the best of "bloomberg west." i am cory johnson. white is hewlett-packard keep laying off more people? is it possible that meg whitman makes more money the more people she restructures out of a job? layoffsok at the boosting executive pay and hp. >> hewlett-packard has a one-time restructuring. they have more layoffs. this helps meg whitman make more. at $3.6cturing costs billion has ballooned. that is half $1 billion more. that is about to hit 50,000 layoffs. let's take a look at businesses. of structure is a cost building a business. if you hire somebody to build it. maybe it becomes obsolete and stale. you shut down the project and you lay off somebody. suggest theg shutting down of a project is a one-time in nature. that is how the accounting works. sales go up. the restructuring goes down here. that is the bottom line. that is what the shareholders get. a the more costs a company can hear, thehere d

this helps meg whitman make more. a restructuring costs at $3.6 billion has ballooned. that is half $1 billion more. that is about to hit 50,000 layoffs. let's take a look at businesses. the structure is a cost of building a business. if you hire somebody to build it. maybe it becomes obsolete and stale. you shut down the project and you lay off somebody. restructuring suggest the shutting down of a project is a one-time in nature. that is how the accounting works. sales go up. the restructuring goes down here. that is the bottom line. that is what the shareholders get. a the more costs a company can move from here down to hear, the bigger the adjusted profit. meg whitman has received $50 million in bonuses. they have seen 11 quarters of shrinking sales. net profits have fallen. restructuring will cost 50,000 people their jobs. you wonder how a company that can cut costs and raise bonuses. a quarter of her incentive plan saves them bottom line financial performance. that is defined as non-gap rockets. the more cost she can move from here to here, the bigger the non-gap

that's part of the strategy of meg whitman, the c.e.o. hired to save the company. whitman was once the global marketing manager for mr. potato head. but after her days in the toy t hasbro, she went on to grow e-bay into a giant, bought skype, and spent $144 million of her own money running for governor of california, an investment she lost. can whitman assemble a happy face now for h.p.? anthony mason met her in palo alto. >> reporter: right here? when she took over hewlett- packard nearly three years ago, meg whitman literally tore down the executive walls. >> so have a seat. we'll have a meeting. >> reporter: so did you-- did you move everybody out into cubicles? >> i did. >> reporter: why? >> so when i got here, this whole area was wood-paneled offices with very formal-- it looked like a bank in many ways. and i said, okay, i, for ten years at e-bay, sat in cubicles exactly like this, and the interaction that happens is amazing. >> reporter: the 57-year-old c.e.o. who took e-bay from 30 employees to 15,000 in her ten- year reign there is now trying to turn aroun

that's part of the strategy of meg whitman, the c.e.o. hired to save the company. whitman was once the global marketing manager for mr. potato head. but after her days in the toy industry at hasbro, she went on to grow e-bay into a giant, bought skype, and spent $144 million of her own money running for governor of california, an investment she lost. can whitman assemble a happy face now for h.p.? anthony mason met her in palo alto. >> reporter: right here? when she took over hewlett-packard nearly three years ago, meg whitman literally tore down the executive walls. >> so have a seat. we'll have a meeting. >> reporter: so did you-- did you move everybody out into cubicles? >> i did. >> reporter: why? >> so when i got here, this whole area was wood paneled offices with very formal-- it looked like a bank in many ways. and i said, okay, i for 10 years at e-bay sat in cubicles exactly like this, and the interaction that happens is amazing. >> reporter: the 57-year-old c.e.o. who took e-bay from 30 employees to 15,000 in her 10-year reign there, is now trying to turn

we'll have frank lake of the home depot who has worked well and meg whitman. you can have constructive partnerships. >> let me come back to you on leadership. relating actually to the chinese. since the chinese have taken over your company, how has it changed from a management perspective? >> really not much at all, andrew. what the chinese allowed us to do when they bought the company memorial day of 2012 was really invest back in the business. we had a strategy. we were somewhat capital constrained after seven, eight, nine years of private equity ownership. what they did is provide us the runway to let some of the ideas that are now coming to fruition really bloom. and it's worked really well. they gave us the cover we needed from a capital perspective, a year and a half later we were successful in an ipo of the company. this is a case, as jeff indicated earlier, it was a win/win for everybody concerned. their investment in our company seasonally doubled over the 14, 15 months from the day they bought it until the day we took it public. and today, we have an

i think that the world wants to know, you are rooting for meg whitman and hp. what is on your to do list? >> she was dealt a very difficult and because her predecessors failed to invest in r&d and marketing. if you are a technology company you have to be innovating. the calculator was a huge innovation at the time. >> michael mckee would help us as well. we are total geeks. >> the app. >> you are so emotionally attached at this innovation and every technology company has to be a true innovator. they market those innovations to consumers. when you had a five-year issue investing -- the problem now is that when meg whitman says they are in the middle of a five-year turnaround, the question for any technology company, microsoft and hp, is, do you have that much time, because things are moving so quickly. >> you were a piÑata for 2 years. how do you send them a message right now? you are one person who has to get the troops motivated. how do you do that? >> i think any large company requires a very consistent communications process. i was a piÑata but we got the

. >>> like mary barra, meg whitman was forced to turn around the company. after downsizing staff she's had to find a way to cut down on energy. that's forcing computer companies such as hewlett-packard to get creative. >> reporter: in las vegas this month hewlett-packard meg whitman announced a bold future. >> this changes everything. >> reporter: a dramatic redesign of computing h.p. calls the machine. what will h.p. be able to do? >> it will be able to compute much faster with huge amounts of data and it will also take up a lot less space and pull a lot less energy. >> reporter: managing the explosion of data is literally sucking up the world's energy supply. >> the estimates are it could take up 25% to 35% of the world ee data centers, up from 2% to 3% today. >> reporter: hewlett-packard is working to use light instead of copper wires and whitman is putting three-quarters of the company's lab team on the project. >> that's a big bet. >> it's a big bet. we're taking a lot of chips, in las vegas analogy, and putting it on red. >> how big is this in terms o

the deal is said to drop all claims against meg whitman and board members while it consolidates efforts to hold account and they have spiked in terms of volume on that reuters report coming out, but the stock price has not move appreciably. it took a charge just last year. >>> back over to you. so what can investoring expect in the second half of the trading year? josh lipton has some predictions. >>> here's what to watch for in the tech sector in the second half. there are nearly 2 billion smartphone users in the world, you might have a few more options when deciding what your next device should be. amazon will ship its new phone on july 25th, and apple is expected to launch its new smartphone in the fall. tech companies could deliver more devices and services to track your health. apple just launched a new app. called health. the tech titans move in this area could motivate areas to jump into the space ago well. analysts think they'll see a large venter looking to acquire more companies to build out their solutions that they can offer clines from stork to cloud services. that you are

what has meg whitman told us all over and over again? there is momentum building. she has slashed payroll. i'm talking about earnings leverage. >> although the margins in the pc business as you well know are nothing compared to printers and their other business. >> no, that's true. hewlett packard is a winner because there's more spending business. it's so interesting that the market is going to overlook cinizar, which is an optics company and i think a lot of it is the margin mix. what i'm saying is that old tack that is not connected to opt ib ices is on fire and you should buy them. >> and if you could buy dell, you would probably buy >> he's going to way a couple of years. hewlett packard has to be one. >> rick santelli is awaiting consumer sentiment numbers and he joins us from chicago. >> thanks, david. tick tock, tick tock. >> 8.123. we have helpers. 81.2 is the june preliminary read on university of michigan sentiment survey. it is shy of the 83 that we were looking for. if i put it in context, i look at the previous month's final at 81.9, you can see where

did the same back in 2010 in support of meg whitman who was the gop gubernatorial candidate four years ago. became friends with mark zukerizucke zuckerbe zuckerberg. photos of him showing up at his house when he hosted a fund-raiser for christie's re-election campaign. meantime governor christie is slated to meet with zuckerberg, again. hosting a live q and a session at facebook headquarters starts at 3:30 this afternoon. people will be posting questions on christie's facebook page. so, both christie and kashkari set to be here in an hour or so and fund-raising is also on the agenda. this is not the first stop, really, for a packed day. governor christie is the chairman of the republican governor's association. he will be helping with a fund-raiser for that group later today in san francisco. it's a luncheon that's $10,000 a plate. so a little bit pricy. >> thanks so much, stephanie. >>> an update to breaking news. crews combing through a burned out mobile home in hayward. the home is still smoldering this morning. it's happening on fuchsia court and mission boulevard. kris sanchez joi

whitman who was the gubernatorial candidate back in 2010. christie has ties with facebook ceo mark zuckerberg who hosted a fund-raiser last year for christie's re-election campaign and today governor christie is slated to meetith zuckerberg, again. he is hosting a live q and a session in menlo park at the facebook headquarters at 3:30 this afternoon our time where people can post questions on his facebook page for a response. as for the event here this morning it is set for 8:00. they're only expected to be here for about an hour or so and about 50 to 60 people. later then governor christie will go to a $10,000 a plate luncheon here in the city and a fund-raiser for the republican governor's association. live in san francisco this morning, stephanie chuang, "today in the bay." >> big names. chris christie probably has the bridge situation squared away here. but neither he nor anyone can control the weather. >> well, if he was going to cross the golden gate bridge right now, probably have to pay that toll depending on which direction he's hea

we put up meg whitman in 2010. epic fail. and the republican party got to 28% of the electorate in california by putting up people who are out of touch. i am running around the state in a bus called the liberty express. i've got a car with 370,000 miles on it. you know what? i've got democrats working on my campaign who disagree with me on major issues. i've been endorsed by rob schneider because democrats are not the enemy. tyranny is the enemy of freedom. when you look around, we've got way too many modern-day examples of tyranny with the nsa and irs and all these other things. >> assemblyman donnelly, we'll be following you and the liberty bus today, thank you for your time. >> thank you. >>> turning to the republican senate race in iowa, will joni ernst crack 35% of the vote and win the republican nomination outright? here's somebody trying to stop her. sam clovis is running against ernst and he joins me now on the phone. sir, you were at 11% in a recent poll. it seems as though the only question is will joni ernst get to

four years ago, the day after the primary he told meg whitman we need to have 10 debates. i said governor brown, you were right four years ago, and that is still right today. >> have you heard anything from him? >> we have asked him to give a response by this friday, so i will let you know next week. i will make him answer for the destruction of the middle class and when i do that, everyone will see he has no answers, and that is how we can beat him. >> when you say the structure metaclass, break it down -- what is the single biggest destroyer? what in 1980, we were 11th for educated workforce. are 48.day, we we were 26th in jobs. today, we are 47. we were 25th in poverty. today we are number one. california is becoming a two-tier state with high earners that are highly educated and very low earners at the bottom. >> you want to change that by cutting taxes? >> i want to rebuild the middle class by bringing jobs back here. toyota announced they were leaving and governor brown shrugged his shoulders and said it is not my fault. the next logical question -- why isn't toyota