Hewlett-Packard Co, the world's second-largest personal computer maker, said on Thursday it would shrink its real estate portfolio, adding to savings from a 10 percent staff cut announced a year ago.
The company said it had not yet determined how much money it may save from the four-year effort to merge several hundred properties into fewer main locations, close some sites that it owns and relinquish space in certain leased buildings. It also has not yet identified all of the sites to be closed.
Hewlett-Packard of Palo Alto, California, said the move will allow it to make better use of its properties and reduce workplace services costs. HP will use some of the savings to add new features to its main offices and give them a "consistent look and feel." The savings will be in addition to the $1.9 billion that HP expects annually from eliminating 15,300 jobs, a spokeswoman said. Chief executive Mark Hurd, who took over in 2005 after the board ousted former CEO Carly Fiorina, is slashing costs to better compete with rivals including Dell Inc, the world's No 1 PC maker, and Lenovo Group Ltd.
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