Global computing giant Hewlett-Packard announced yesterday plans to merge or close hundreds of offices into a smaller number of headquarters. This is part of a cost-cutting strategy the company initiated a year ago.
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HP Pavilion dv8000 laptop. Photo: Cnet |
The company has not yet decided which offices will be closed or how much cost savings are expected from this four-year plan. “This restructuring will enhance many functions for the headquarters,” stated Hewlett-Packard, which is headquartered in Palo Alto, California.
Last month, HP consolidated various functional departments including manufacturing, statistics, supply chain, and ordering for its PC, printer, and server sales divisions.
CEO Mark Hurd, who has held the position since 2005, succeeding Carly Fiorina, has implemented cuts of more than 15,000 employees, accounting for about 10% of the total workforce, resulting in savings of at least $1.9 billion to compete with rivals like Dell, the world’s number one PC manufacturer, and Lenovo, which ranks just behind HP.
Lenovo has become the third largest computer company globally since acquiring IBM’s personal computer division in the second quarter of last year.
Yesterday, HP also announced plans to revamp its office infrastructure and equip facilities with modern technology, such as new Internet phones, wireless connectivity, and Internet access in living rooms, lounges, and self-service dining areas.
The company is also consolidating many offices and key locations globally, closing or selling several properties that HP currently occupies.
Regarding representative offices, HP recently announced it will reduce 85 information data centers to 6 centers located in three sites.
Hewlett-Packard’s stock rose 49 cents, or 1.5%, to $33.26 yesterday on the New York Stock Exchange.
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