With the major change to remote working and location independent business, it’s no surprise to see many making adjustments that not only better suit the business needs but also lead to a better balance for employees too – some change has also come through legislation too as online platforms have shifted to avoid new regulation like some of the biggest options– but some are also changing to keep up with the times and leaving behind what was once a popular hub that attracted talent to new locations that are more suited for modern workers. The most notable examples are the tech giants leaving California, with many eyeing Texas as their new home.
Cost of living has become a consideration here, although there is no shortage of talent in the tech space willing to sign on to these tech giants and land the job of a lifetime, it has become harder for many and unless there’s an option to go remote, living in Silicon Valley just isn’t an option for many – moving elsewhere with a cheaper cost of living such as Texas and in some instances Florida allows for these tech companies to keep bringing in the impressive talent without the downsides that come from the west coast.
Tax also plays a big role here too – taxes is California are quite significant and had been something that individual content creators and influencers have used as justification in the past and whilst the tech giants will be unlikely to admit the same, the tax benefits of going to a lower tax state will certainly be something that has been accounted for too along with the benefits to employees with no income tax too – exactly what role this will play in the movement may never be known, but could become more obvious if taxes in Texas were to rise and tech hubs would look for different locations.
Tesla has certainly been the biggest to announce this change despite their current expansion plans in California, but both Hewlett Packard and Oracle had also announced the same with as many as 74 other tech companies leaving the valley and choosing different states to headquarter in – it is certainly an interesting period of change and something that many in the tech space have expected for quite some time, and may help lead to the emergence of a new Silicon Valley in one more states as tech innovation becomes spread across the US rather than concentrated in a singular location.