Whether it’s taxes, COVID-19 or just common-sense business decisions, companies in California are deciding to pack up and move their operations.
Oracle joined the exodus of major tech companies, announcing a shift in policy along with its plan for a new address in Austin, Texas.
“Oracle is implementing a more flexible employee work location policy… we believe these moves best position Oracle for growth and provide our personnel with more flexibility about where and how they work,” the company said in a Securities and Exchange Commission filing that also said many employees can choose their location, including home offices.
The announcement included a commitment to maintain a presence in “major hubs,” including Redwood City and Santa Monica in California and Denver, Colorado.
Oracle has 18,121 employees in the Bay Area, according to LinkedIn.
Jim Wunderman, CEO of the Bay Area Council representing large companies, told the San Jose Mercury News that the trend should be considered disturbing for the Golden State.
“It’s time for everyone to wake up and understand that we’re in a crisis of confidence when it comes to business in our state,” Wunderman said. “Major companies and institutions are either leaving or planning to leave or talking about leaving, and that’s exactly the opposite of what any region or any state would want.”
The Silicon Valley businesses on the move also indicate a possible planned shift away from the traditional huge office campuses.
In August, Pinterest ended its San Francisco office lease; two months ago, Dropbox announced in October a switch to a permanent remote work option; and earlier this month, Hewlett Packard Enterprise said it would relocate its headquarters from San Jose to Houston.
Tesla CEO Elon Musk has expressed an eagerness to move as well. He targeted Austin, though his major operations remain in California for now.