It’s no news that Silicon Valley, San Francisco has been the hub for technological advancement and talent management for years. All the major tech companies in the world have their main branch at the Valley. Unfortunately, this tech hub might lose its grip in the industry due to the Coronavirus pandemic.
Tech Talent and Investors Flee Silicon Valley
Due to the prominence of tech companies in Silicon Valley, the cost of rent, food, and everything else is incredibly expensive. It is one of the most expensive places to live in the world. Now, as working from home becomes the norm, individuals and companies are moving to cheaper cities.
The latest company to announce its relocation is Oracle Corp. The tech company, which has a valuation of $180 billion, announced that it will be leaving the Bay area and taking its headquarters to Austin, Texas. They claim that they decided to move because they have implemented a more flexible remote work policy for their staff.
The news about Oracle’s relocation comes shortly after Hewlett Packard Enterprise Co announced that they will be moving their headquarters from Silicon Valley to Huston. Even Tesla’s Elon Musk said that he has moved from the Valley to Texas. Musk said that he decided to leave the tech hub because the state’s policies are restrictive. Many of the others who decided to leave the Bay area made the same complaint.
Since the Coronavirus pandemic, remote work has been standardized in many companies. Tech experts can especially work from home without any bearing on the quality of their work. Some of them have reported that they can do more from home than from the office.
If there is no need to stay in Silicon Valley to do your job, why continue paying for such an expensive place? If relocation continues at this pace, the Valley may lose its reputation as the world’s greatest tech hub in the United States.