California loses a Fortune 500 firm, after founding father HPE pronounces HQ transfer away from Silicon Valley to Houston, Texas
One of many founding corporations of California’s tech homeland of Silicon Valley, is leaving the ‘golden state’ and transferring its headquarters to Texas.
Hewlett-Packard Enterprise (HPE) mentioned the transfer to relocate its headquarters from San Jose, California to Houston, Texas, was as a result of “Houston is a beautiful market to recruit and retain future numerous expertise.”
The agency confirmed that it’s going to consolidate quite a lot of websites within the Bay Space to its San Jose campus, however no layoffs are anticipated.
HPE announced the move in a regulatory submitting, as corporations discover lower-cost various areas to California.
“HPE has made the choice to relocate its headquarters from San Jose, California, to Houston, Texas,” mentioned the agency. “HPE’s largest US employment hub, Houston is a beautiful market to recruit and retain future numerous expertise, and is the place the corporate is presently setting up a state-of-the-art new campus.”
“The Bay Space will proceed to be a strategic hub for HPE innovation, and the corporate will consolidate quite a lot of websites within the Bay Space to its San Jose campus,” it mentioned. “No layoffs are related to this transfer.”
However based on Bloomberg, the transfer to Texas comes amid a broader re-evaluation, motivated by pandemic-enforced distant working preparations, and by people and corporations opting to go away behind an space well-known for its very excessive value of residing and commuting difficulties.
Quite a few different corporations have already left the San Francisco Bay Space, together with data-mining supplier Palantir Applied sciences, which moved to Denver from Palo Alto.
E-cigarette maker Juul Labs additionally relocated to Washington from San Francisco, and Charles Schwab mentioned final 12 months its headquarters will transfer from San Francisco to Westlake, Texas.
Elon Musk additionally famously threatened in May this year to move the Tesla factory out of California altogether, to Texas or Nevada, after clashing with officers in Alameda County.
However HPE is without doubt one of the founding fathers of Silicon Valley.
HPE was created within the 2015 break up of tech veteran Hewlett-Packard Co, which was based in 1939 in a Palo Alto storage.
There’s little doubt that the choice by HPE to shift its headquarters from San Jose is a blow to the Bay Space and California as an entire, and can function a warning for native officers struggling to maintain jobs within the native space, amid vastly costly housing and poor commuting.
It’s reported that HPE’s Texas facility will include all the executive work, whereas the expertise innovation hub will stay in San Jose.