The program is intended to lead to reduced real estate costs by consolidating several hundred HP real estate locations worldwide to fewer core sites. HP plans to use a portion of those savings to upgrade these core sites into offices that provide improved technology infrastructure, productivity enhancements and a common HP look and feel.
To reduce costs, HP expects to consolidate real estate holdings into core sites in key locations around the world, relinquish floor space within certain leased buildings and close certain sites or floors in buildings that it owns. Doing so should enable the company to improve its utilization of those sites and drive down the cost of workplace services. Plans are not yet finalized as to which facilities will be closed or how much in savings will be generated.
To create more vibrant and productive work environments, HP plans to make substantial improvements to the core worksites, so they better showcase HP technology and provide a consistent look and feel across sites worldwide. Updated sites will use more open seating and shared team spaces to increase collaboration and innovation.
The company plans to expand private spaces for individual work including focus booths and free address workstations. Additional enhancements are expected to include high-quality HP print stations, mobility-enabling technology -- voice over IP/wireless LAN -- and improved IT access in coffee, cafeteria and lounge areas.
This initiative is an extension of HP's restructuring announced on July 19, 2005, to simplify the company's structure, reduce costs and bring a renewed focus on serving customers. The workplace changes complement the company's recently announced initiatives to consolidate HP's 85 IT data centers to six centers in three geographic locations and to realign its global operations function.
HP is a technology solutions provider to consumers, businesses and institutions globally. The company's offerings span IT infrastructure, global services, business and home computing, and imaging and printing. For the four fiscal quarters ended April 30, 2006, HP revenue totaled $88.9 billion. More information about HP is available at www.hp.com.
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