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A Big Part of Hewlett Packard Is Leaving Palo Alto. It’s Like General Motors Leaving Detroit

Renovated HP garage, left, and shed. Photograph by David Paul Morris — Bloomberg/Getty Images

Hewlett Packard Enterprise is looking for a fresh start in a new city.

Since it was founded in a Palo Alto garage in 1938, Hewlett-Packard has called Palo Alto home. Two years ago Hewlett-Packard Co split into Hewlett Packard Enterprise (HPE) and HP Inc, and now HPE is moving its headquarters to nearby Santa Clara.

The current headquarters, which has been the company’s home since 1957, will be sold. However, HP Inc, which focuses on hardware, will remain in the same location.

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Analysts were shocked in August when HP Inc came out with a quarterly earnings report that looked more optimistic than that of HPE. The latter, which focuses on selling technology to businesses, was expected to surge ahead, but has fallen short of sales targets for four consecutive quarters. The move is seen as the latest in a series of efforts to turn performance around; others have included layoffs and divestments.

In Santa Clara, HPE will share offices with Aruba, a company it acquired in 2015. The move will also see HPE jobs in the Bay Area move to San Jose and Milpitas. Although HPE did not disclose how many employees it has in Silicon Valley, The Mercury News reported that at least 200 jobs would move to San Jose. The move is planned to be completed by October 2018.

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