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Street Will Reward HP Layoffs
CNBC.com | May 23, 2012 | 07:18 PM EDT

Lately, the Street hasn’t liked layoffs, but top trader Pete Najarian says the Hewlett Packard layoffs will be the exception to that rule.After the bell, Hewlett Packard said it would lay-off 27,000 workers or 8 percent of its employees by October 2014.OptionMonster Pete Najarian concedes it’s a terrible development for the people who are losing their jobs, but he also believes the Street will reward the stock.

Najarian calls it a bold move on the part of CEO Meg Whitman and says, “Now we know what Meg Whitman intends to do. Now we know about the company’s direction.”

Najarian says that in the near-term, he takes the layoffs as a sign that Whitman intends to “make the company more efficient.” The lay-offs are expected to save as much as $3.5 billion.

And looking at the nature of the cuts, Najarian says they reveal where Whitman intends to put her focus -- "On the cloud, big data and security. That's where they’re going.”

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