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Oracle announced it has relocated its headquarters to Austin, Texas, becoming the latest tech company to move out of the San Francisco Bay Area, Bloomberg first reported on Friday.
The big picture via Axios' Jim VandeHei and Mike Allen: America’s entrepreneurial and technology power is dispersing beyond Silicon Valley and New York — a trend greatly accelerated by two Cs: coronavirus and California.
Texas has no state income tax, while California, in contrast, is known for high taxes and strict regulatory policies.
- Hewlett-Packard Enterprise said earlier this month it will be moving its corporate headquarters to Houston.
- Tesla CEO Elon Musk said this week he's moved from California to Texas.
- "I think we’ll see some reduction in the influence of Silicon Valley," Musk told the Wall Street Journal.
What they're saying: "We believe these moves best position Oracle for growth and provide our personnel with more flexibility about where and how they work," an Oracle spokesperson told CNBC.
- The company also said it permit the majority of its workforce to select which office they want to work from, or if they continue to work from home.
- "[W]e will continue to support major hubs for Oracle around the world, including those in the United States such as Redwood City, Austin, Santa Monica, Seattle, Denver, Orlando and Burlington, among others, and we expect to add other locations over time."
- “By implementing a more modern approach to work, we expect to further improve our employees’ quality of life and quality of output.”