Several thousand workers will be transferred to HP's Palo Alto headquarters over the next two years.
The 100-acre campus in Cupertino has been home to some of HP's personal computer division, as well as some commercial software and hardware units.
Cupertino's mayor says the announcement is a blow to the city, which gets significant tax revenue from HP's operations.
The company's chief administrative officer released a memo to employees Thursday saying, "Consolidating employees will create a more productive, flexible, ecological...and highly energized work environment."
