HP to Shutter Some Facilities

Hewlett-Packard Co. announced plans Thursday to merge properties into fewer main sites as part of a cost-cutting plan announced a year ago.

The company has not decided which facilities to close and has not yet said how much money it might save from the four-year effort.

It will use some of the savings to add new features to its main offices and give them a “consistent look and feel,” the Palo Alto-based computer maker said.

HP said last month that it would merge various functions including supply chain, logistics and order fulfillment with its PC, printer and server computer businesses.

Chief Executive Mark Hurd, who took over in 2005 after the board ousted then-CEO Carly Fiorina, is cutting more than 15,000 jobs, or about 10% of the staff, to reduce costs by at least $1.9 billion annually to better compete with rivals including Dell Inc. and Lenovo Group Ltd.

HP said it planned to redesign some of its main offices and would add more up-to-date technology including Internet-based telephones, wireless networks and improved computer access in coffee, cafeteria and lounge areas.

The company said it would consolidate some properties into core sites in key locations worldwide, relinquish floor space in some leased buildings and close certain sites or floors in buildings it owns.

The changes follow HP’s recent announcement that it will merge its 85 information technology data centers into six centers in three locations.

Shares of HP rose 33 cents Thursday to $33.10.