Oracle is moving its global headquarters from Silicon Valley to Austin, Texas, the company said in a filing with the Securities and Exchange Commission.
“Oracle is implementing a more flexible employee workplace policy and has changed its headquarters from Redwood City, California, to Austin, Texas,” Oracle wrote in its quarterly report to the SEC. “We believe these changes best position Oracle for growth and give our people more flexibility in where and how they work.
The company will continue to maintain an office at its former headquarters in Redwood City, California, and other offices across the country. Oracle has 135,000 employees.
Bloomberg reports that Oracle opened a campus in Austin in 2018, hoping to take advantage of the region’s low cost of living. The campus was designed to accommodate 10,000 employees.
The skyrocketing cost of real estate in the San Francisco Bay Area – and possibly high taxes in California – have encouraged a growing number of Silicon Valley companies to move their operations out of the country. California. The pandemic has also forced companies to rely more on remote working, which has made it easier to decentralize their workforce.
HP Enterprise, an enterprise software company that split from original HP in 2015, moved its headquarters to the Houston area last week. This week, Elon Musk revealed that he had personally moved to Texas to be closer to SpaceX’s Boca Chica launch facility (where Starship is being tested) and Tesla’s new auto plant in the Austin area.
Apple announced a major expansion of its Austin campus two years ago. Its headquarters are still located in Silicon Valley.
Palantir also recently announced that he is leaving Silicon Valley, but moving to Colorado.
Oracle founder Larry Ellison is one of Donald Trump’s most prominent supporters in the tech industry, so he may find he fits better in the more conservative state. It is not known if Ellison is personally moving to Texas. Ellison sits on the Tesla Board of Directors.