SGI, which in May announced 400 layoffs (10% of its employees), says it will consolidate its operations onto its Crittenden Technology Center campus also in Mountain View, where it will lease more space. Google, which will relocate its 800 employees to the Amphitheatre Technology Center campus and still have room for future expansion, has not said what would become of its current headquarters at 2400 Bayview Dr.

SGI says it will vacate the Amphitheatre campus in stages beginning this month and complete the relocation by August 2004. The lease transactions are expected to result in a net reduction in SGI's facilities occupancy costs of $14 to $17 million per year beginning in July 2004. Meantime, it will cost money, according to the company's SEC filings.

During the transition period, SGI says it expects to make a $1 to $3 million net investment in costs associated with the move, and will recognize additional non-cash charges currently expected to total approximately $18 to $20 million. In subsequent years, SGI will record additional non-cash charges currently expected to be approximately $3 to $8 million per year over the term of the sublease.