The smart money may be sticking together and sticking it to California.
Oracle is joining Tesla and Hewlett Packard Enterprise in moving some operations to Texas, detailing the move in a filing with the Securities and Exchange Commission late Friday.
"Oracle is implementing a more flexible employee work location policy and has changed its Corporate Headquarters from Redwood City, California to Austin, Texas. We believe these moves best position Oracle for growth and provide our personnel with more flexibility about where and how they work. Depending on their role, this means that many of our employees can choose their office location as well as continue to work from home part-time or all of the time. In addition, we 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" the SEC filing noted.
While the move signals working remotely is here to stay, it also signals more corporations could be becoming disillusioned with California.
Oracle CEO Larry Ellison is the second-largest individual shareholder in Tesla behind CEO Elon Musk and sits on the electric-vehicle maker's board. Last summer, Tesla chose Austin for its new factory, after considering other cities including Tusla, Oklahoma.
Earlier this week Musk blasted California for driving a corporate exodus, likening the state to a sports team that is used to winning and has grown complacent.
California, like a winning sports team that “has been winning for a long time,” has taken innovators for granted, Musk said, adding, “You have a forest of redwoods and the little trees can’t grow.”
Musk made the comments in an interview with the Wall Street Journal published on Tuesday. In the interview, Musk revealed that he personally had moved to Texas after growing frustrated with the Golden State.
Earlier this month, Hewlett Packard Enterprise also announced it was moving its headquarters to Houston.
|HPE||HEWLETT-PACKARD ENTERPRISE CO.||15.15||+0.10||+0.66%|
“HPE has made the decision to relocate its headquarters from San Jose, California, to Houston, Texas. HPE’s largest U.S. employment hub, Houston is an attractive market to recruit and retain future diverse talent, and is where the company is currently constructing a state-of-the-art new campus. The Bay Area will continue to be a strategic hub for HPE innovation, and the company will consolidate a number of sites in the Bay Area to its San Jose campus. No layoffs are associated with this move.”
Courtesy: Hewlett Packard Enterprise
Texas Governor Abbott celebrated the move in a Tweet welcoming HPE to the "Lone Star State!"