In conjunction with the move, Dr. Robert Iannucci is being promoted to vice president of corporate research. Iannucci had been director of Compaq's Cambridge research lab, which will stay in New England due to its connection to Harvard University and Massachusetts Institute of Technology.
Compaq spokesperson Eileen Quinn described the move as "strategic," and added "the importance of Silicon Valley warranted moving the headquarters."
Compaq did not layoff any employees because of the move, said Quinn.
The relocation is part of Compaq's strategic realignment, as the company reassesses operations and closes down some facilities. Compaq is expected to lay off as many as 8,000 employees and take a charge of nearly $1 billion during the third quarter as part of restructuring.
Just two weeks ago, Compaq announced it would lay off 1,600 employees in Singapore.
In other news, Compaq today declared a 2 cents per share quarterly dividend on its common stock. The dividend is payable on October 20 to shareholders of record on September 30.
"It's something we do every quarter, and it's been 2 cents since late 1998," said Quinn. "It?s something we do for shareholder value."
Compaq shot up nearly 10 percent today on news of the dividend, closing up 2.25 to 25.1875, on 27 million shares.