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Hewlett-Packard Enterprise, one of two public companies that now bear the HP name, said Tuesday it's moving its corporate headquarters from San Jose, California, to Houston.
Why it matters: The move isn't financially huge, as HPE already had a significant number of employees based in Houston, the old hometown for Compaq, which merged with HP in 2001. But the symbolism of a Silicon Valley icon picking up and leaving is not a good look for the Bay Area.
Details: HPE said it doesn't plan layoffs and it will keep a significant presence in California.
- Silicon Valley "will continue to be a strategic hub for HPE R&D, innovation and technical talent," it said in a blog post.
The big picture: Enterprise cybersecurity firm Tanium is also leaving Silicon Valley for the Seattle suburbs, as reported by GeekWire.
- "San Francisco is not the city it was 20 years ago," CEO Orion Hindawi told GeekWire.
Yes, but: HP Inc., the company that makes PCs and printers, is staying put in the Bay Area, a spokesperson told Axios.
Between the lines: Taxes surely played a role, as Texas has lower corporate taxes and no state income tax. However, it's not that simple, some experts say, noting Texas has higher sales and property taxes.
My thought bubble: The threat to Silicon Valley's industry centrality is less from changes in the region than from the way the pandemic has opened the floodgates to remote work, offering employees that want more space or better schools an option to get those benefits without changing jobs.
Editor's note: This headline has been updated to reflect that Hewlett-Packard Enterprise is not "part of HP."