Hewlett-Packard Enterprise (HPE) 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), its manager said in the filing.
HPE opened its new regional headquarters in a new office campus at 1 Depot Close in May. Due to the scale of the project, the move was staggered and the decision to end the lease was part of this long-term plan, an HPE spokesman told The Straits Times.
Last Friday (Sept 22), Bloomberg reported that HPE plans to cut about 10 per cent of its workforce or 5,000 employees as part of its cost-cutting efforts. The cuts at the firm, which has about 50,000 workers, are likely to affect staff in the United States and abroad, including managers, Bloomberg reported. It is not clear how the workforce in Singapore will be affected.
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 reductions 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 HPE Singapore.
The manager is also still 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.
HPE Singapore's lease constituted about 11.1 per cent of FCOT's total gross rental income for June.
Alexandra Technopark, a high-tech business space development, had occupancy of 94.8 per cent at the end of the 2016 financial year.