News

HP to shift Cupertino operations to Palo Alto

Move could boost sales-tax revenues in Palo Alto

HP plans to shut down its Cupertino operation and move its Cupertino employees to Palo Alto, according to a company memo obtained by the website VentureBeat.

The shift could bring sales-tax revenue to Palo Alto, along with the workers, according to a city official.

In the memo, addressed to its Bay Area workers, the Palo Alto-based computer giant announced that it seeks to achieve better efficiencies and use space more effectively by closing its Cupertino facility and shifting operations to Palo Alto, a move that it expects to complete in two years.

The move refers to a recent analysis that "shows current utilization of both sites is low, with only about 60 percent of workspaces in regular use." The company's goal is to raise that number to 90 percent.

The shift in operations is part of the company's broad "global workplace initiative," which according to a company spokesperson "is one of the many ways we are executing on our strategy to improve efficiency across the country."

"This effort allows HP to better use space, continue to reduce our carbon footprint and provide employees with a more collaborative work environment," the HP spokesperson said.

HP did not disclose how many employees would be relocating as part of this effort.

Palo Alto Deputy City Manager Steve Emslie, who heads the city's Office of Economic Development, said the company plans to renovate vacant space on its existing campus.

The company was founded in 1939 by Stanford University graduates William Hewlett and David Packard. Initially housed in a one-car garage on Addison Avenue, the company ultimately set up its headquarters on Page Mill Road and grew into one of the world's largest computer companies.

Emslie hailed the move as great news because it essentially ensures that one of the Palo Alto's biggest and most prestigious companies will remain in the city. Emslie said the move could also bring sales-tax revenues to the city and, potentially, higher property taxes because HP's upgrades could require a reassessment.

HP has been one of Cupertino's top 40 sales-tax producers, according to the City of Cupertino website.

Aarti Shrivastava, Cupertino's director of community development, said she would not divulge the specific economic impact that HP has had on the city.

"We're sorry to be losing an important corporate tenant," she said, adding, "This does open up some opportunities."

The company's plans, according to the HP memo, include shifting its Customer Briefing Center to Palo Alto and making other upgrades to its existing facilities in Palo Alto. These include fully upgrading one of its Palo Alto buildings and making "improvements" to six other buildings.

"Older infrastructure will be replaced with new, more efficient technology, using green solutions such as energy-efficient lighting and equipment and sustainable materials," the memo stated.

Comments

Like this comment
Posted by Jan
a resident of Midtown
on Jul 16, 2010 at 12:06 pm

Sounds very promising re: HP Customer Briefing Center to Palo Alto !


Like this comment
Posted by Resident
a resident of Another Palo Alto neighborhood
on Jul 16, 2010 at 2:41 pm

The radio report I heard said that 2,000 employees would be moving to Palo Alto. I sure hope they use 280.


Like this comment
Posted by JA3+
a resident of Crescent Park
on Jul 16, 2010 at 3:07 pm

Great news! Thanks, HP!


Like this comment
Posted by Bob
a resident of Menlo Park
on Jul 16, 2010 at 3:42 pm

The report I heard said 3,000 employees transferred to Palo Alto. What's that going to do to Palo Alto traffic? Never fear, PA folks will probably blame it on Stanford and its Med Center.


Like this comment
Posted by take Caltrain
a resident of Midtown
on Jul 16, 2010 at 4:13 pm

Caltrain is a great way to get to jobs in Palo Alto. If they don't already, HP should run non-stop shuttles between the train station and their job site.


Like this comment
Posted by Resident
a resident of Another Palo Alto neighborhood
on Jul 16, 2010 at 5:02 pm

Unfortunately, Caltrain does not run through Cupertino.

I do welcome the influx of jobs and sincerely hope that the route these exCupertion people use will be Foothill Expressway and 280.

If HP puts on shuttles from Caltrain to HP campus, they will need a large number of shuttles if thousands of their employees did manage to commute by train. However, unless these employees manage to get from their homes by bike, walking, public transport or managing to find parking at their nearest Caltrain station, then they will be coming by car.

I am not a "too much traffic" type of person, but this is a great example of how poor public transport options are in Palo Alto. Not only are these new employees likely to be commuting to work, but the likelihood is that they are going to be driving to Cal Ave at lunch time and there is not enough parking for them there either.

We should at least get some better lunchtime options on Page Mill and wherever all these new jobs are going to be sited.


Like this comment
Posted by Too much traffic
a resident of Another Palo Alto neighborhood
on Jul 16, 2010 at 5:39 pm

HP needs to gurantee no new net car trips into the city and they will need to provide housing for all their employees in the city. Otherwise we should tell them to stay out.
If you ask it if Stanford, you should demnad it from HP and from every business that opens in town--be it a giant corporation or a small mom and pop store.


Like this comment
Posted by take Caltrain
a resident of Midtown
on Jul 16, 2010 at 6:42 pm

Probably only a minority of those employees actually live in Cupertino. HP should encourage all their employees with practical access to use public transit, including providing free commuter passes and shuttles to the job site.

And to all you Stanford shills, I doubt that the city has any leverage over a company who is using a building that has long been completed. HP is not asking for any new building permits, zoning changes, environmental waivers, etc.


Like this comment
Posted by Too much traffic
a resident of Another Palo Alto neighborhood
on Jul 16, 2010 at 7:16 pm

"And to all you Stanford shills, I doubt that the city has any leverage over a company who is using a building that has long been completed. HP is not asking for any new building permits, zoning changes, environmental waivers, etc."

That is irrelevant--if traffic is such a major problem in PA, then adding 2000-3000 new employees will increase traffic. After all, the queen of "too much traffic" has publicly stated that even one additional car trip into PA is too many.
Actually if PA really did demand that of HP, they would just say goodbye and go to a more welcoming location.


Like this comment
Posted by FearNot
a resident of Old Palo Alto
on Jul 16, 2010 at 10:03 pm

I would not worry, hp is more likely to ask the majority of these employees to start working remotely to save itself the realestate cost of setting up new space in Palo Alto. I estimate only a third of the total employees will have to commute and most of them already live close by including me in Palo Alto


Like this comment
Posted by PA
a resident of Downtown North
on Jul 16, 2010 at 11:01 pm

HP does not provide free transit passes. Would be great if they did.


Like this comment
Posted by common sense
a resident of Midtown
on Jul 17, 2010 at 10:57 pm

Read the article; HP will be wanting permits to rennovate buildings, etc. Steve Emsilie said that part of the benefit the city gets is the re-assessed property value improvements for such rennovations.

Palo Alto has very good public transit options. Its the South Bay that does not hae public transit options. Most of the HP employees who work at Cupertino will live in Sunnyvale, San Jose, Cupertino, Campbell - a virtual desert of public transportation compared to Palo Alto.

I think there is a good point in that since the city is demanding benefits from Stanford Hospital from expanding their employment, then they should make the same demands not only from HP, but from Facebook, Skype, as well.


Like this comment
Posted by uncommon sense
a resident of Green Acres
on Jul 18, 2010 at 5:35 am

That's right, common sense!!! It makes good sense to make it as hard as possible for businesses to locate here, and it makes good sense to make new employees who might want to shop here and even buy a house here, to feel unwelcome!

We don't need no stinkin' new folks to come here and pay any taxes to this city! We have so much money, we don't know what to do with it! We certainly don't need to replenish our blood!

geez


Like this comment
Posted by neighbor
a resident of another community
on Jul 18, 2010 at 9:31 pm

OMG this is a tragedy! OMG the traffic! OMG the humanity!
This is good traffic and the Stanford commuters are bad traffic.


Like this comment
Posted by Been here all along
a resident of Another Palo Alto neighborhood
on Jul 18, 2010 at 9:43 pm

I'm not the only HP employee looking forward to working closer to home. My colleages who live in Los Altos, Mountain View, Menlo Park, and points north are also looking forward to shorter commutes. Honestly, this announcement doesn't mean that 3000 more people will be commuting from Cupertino to Palo Alto. Given the downsizing over the years, I suspect the commute patterns will closely resemble normal if you look over the past decade.


Like this comment
Posted by Me too
a resident of Barron Park
on Jul 19, 2010 at 12:29 pm

A good percentage of those that will be transfered to Palo Alto were previously transfered FROM Palo Alto. I live walking distance from PA HP and my job was transfered to Cupertino during the Carly era. There are a lot of people who lived either in or north of Palo Alto, who will now be commuting less. You should be happy HP didn't decide to close the PA buildings, like so many others.


Like this comment
Posted by jb
a resident of Leland Manor/Garland Drive
on Jul 19, 2010 at 6:05 pm

This is not new. Welcome back, HP.

Even before Carly at the corner of Alma and Oregon, way back in the early '90s, Hewlet Packard occupied the property at Alma and San Antonio at the start of the San Antonio overpass. Those people were transferred to HP Cupertino.

Before HP, that property was a shopping center that had a Penny's, Accent Arts (now on Cal Ave via a stint at the Charleston shopping center), and other small shops including a pet store where I supplied my goldfish with food. Everything comes around again.


Like this comment
Posted by Lois
a resident of Midtown
on Jul 20, 2010 at 9:59 am

Meanwhile, Volkswagen will be leaving Palo Alto and moving to Belmont!! Bye, bye German beetle!!!


Sorry, but further commenting on this topic has been closed.

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