Hewlett-Packard Enterprise (HPE) is the latest tech company to leave Silicon Valley, announcing Tuesday that it will relocate its headquarters from San Jose, California, to Houston, Texas.
Hewlett-Packard founded by partners Bill Hewlett and Dave Packard in a garage in Palo Alto 1939. Now, HP Enterprises is one of the original Silicon Valley success stories.
Houston is currently HPE’s largest US employment hub, and the company is constructing a new campus in the city. HPE will also consolidate a number of its Bay Area sites to its San Jose campus. The move won’t result in any layoffs.
Many large tech companies that in 2020 have announced plans to leave the Bay Area for Texas, with the mass movement dubbed “Texit”(Texas Exit).
Oracle (ORCL) plans to keep some of its operations in California, it announced plans to move its headquarters from Redwood City, Calif., to Austin.
DZS Inc.The telecommunications equipment firm announced earlier this year plans to move its headquarters from Oakland, Calif., to Plano, Texas.
FileTrail, which makes records management software for law firms, moved from San Jose to Austin earlier this year.
Question Pro, the online survey software firm announced its move from the Bay Area to Austin, in January 2020
8VC, Londonsdale’s VC firm is moving its headquarters from Silicon Valley to Austin. “It’s just become really obvious that there are a lot of places to build around the country, not just Silicon Valley, due to cost of living, talent and all sorts of other things, culture and what not,” Lonsdale told the Austin American Statesman last month.
Tesla is building a large factory near Austin. Its CEO, Elon Musk, announced in late 2020 that he had moved from California to Texas to be near the facility.
Dropbox (DVX) Drew Houston has bought a home in Austin and plans to make it his permanent residence, according to a report from The Information last month.
Dell’s headquarters is in Round Rock, Texas, near Austin, and many other tech companies are considering moving to Texas for tax reasons. In fact, a patch of Austin has been nicknamed “Silicon Hills” because of its cluster of tech companies in the metro Austin area.
And here are a few who have recently moved to Florida:
David Blumberg, The founder and managing partner of early-stage venture capital firm Blumberg Capital left the Bay Area for Miami, the San Francisco Business Times reported earlier this month.
Keith Rabois, a general partner at Founders Fund and former executive at PayPal and LinkedIn, told a Fortune reporter last month that he is leaving the Bay Area for Miami.
Jon Oringer, The founder and executive chairman of Shutterstock and a former New York resident bought a $42 million mansion in Miami Beach in October, according to the South Florida Business Journal. Oringer has since formed Pareto Holdings, a firm aimed at incubating and investing in startups in the Miami tech scene.
The main reasons behind the relocations are: taxes, a shift towards work from home culture, and office space. In the Bay Area, size is often cramped due to the always high property taxes. Additionally, the pandemic has forced a vast majority of workers to call in to work. There will also be many effects caused by this change. Texas will become a new center of innovation, much like Silicon Valley due to the new influx of technology giants. Additionally, the taxes paid by the billionaires who own and run these companies will be significantly smaller, making them richer than before.
Some companies are also allowing employees more flexibility with where they work, while retaining office space. Twitter and Square are letting employees work from home “forever,” while Microsoft said workers will have more flexibility to work from home. Facebook CEO Mark Zuckerberg predicted in May that 50% of employees will be working remotely within the next decade.