HP Enterprise to cut rental space, Latest Business News - The New Paper

HP Enterprise to cut rental space

This article is more than 12 months old

Hewlett-Packard Enterprise Singapore will vacate most of the space it rents at Alexandra Technopark after the leases expire later this year.

The firm, which occupies 191,846 sq ft at the technopark, plans to vacate 178,843 sq ft by Nov 30, it was announced in a filing with the Singapore Exchange.

That amounts to 17.1 per cent of the total net lettable area at Alexandra Technopark.

It also constituted 6.6 per cent of the gross commercial income for June for landlord Frasers Commercial Trust (FCOT).

The decision comes close on the heels of Hewlett-Packard's reported plan to cut about 10 per cent of its workforce or 5,000 employees as part of its cost-cutting efforts. It is unclear how the workforce in Singapore will be affected.

The cuts are likely to affect staff, including managers, in the United States and elsewhere, Bloomberg reported.

Hewlett-Packard Enterprise, one of the several businesses to spring out of Hewlett-Packard, offers cyber security, cloud services, servers and other corporate technology.

But it has been responding to a changing industry that is under pressure from cloud providers such as Amazon.com and Alphabet's Google.

The staff cuts are expected to start before the end of the year, it was reported last week. Frasers Centrepoint Asset Management, the manager of FCOT, said it has already secured commitment by a tenant for around 24,000 sq ft of the space to be vacated by Hewlett-Packard.

The manager is also in discussion with another tenant, Hewlett-Packard Singapore, with regard to its plans for the approximately 304,920 sq ft it occupies at the technopark under leases expiring on Nov 30.

HP Singapore's lease constituted about 11.1 per cent of FCOT's total gross rental income for June.