Hewlett-Packard to Shrink Office Space
Forging ahead with its companywide restructuring plan, Hewlett-Packard (HPQ) announced Thursday that it will consolidate its sprawling array of worldwide offices.
The move is intended to reduce real estate costs by consolidating several hundred locations into "fewer core sites," H-P said in an announcement. The company did not disclose the amount of savings it expects to reap from the move.
H-P said it will close certain sites or floors in buildings that it owns and relinquish floor space in leased locations.
As of Oct. 31, 2005, H-P owned or leased approximately 65 million square feet of space worldwide, including administrative and manufacturing facilities, according to its annual report.The real estate consolidation is the latest in a string of actions undertaken by CEO Mark Hurd designed to cut the company's costs and streamline operational efficiencies. A key aspect of the plan includes layoffs of more than 15,000 H-P employees, or 10% of its workforce. The move is expected to save the company some $2 billion in fiscal 2007. Shares of H-P were up 1%, or 32 cents, at $33.09 in late trading Thursday.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV