SpaceX and X headquarters are now leaving California for Texas, Elon Musk announced on his social media platform.
“This is the final straw,” Musk posted on X, previously Twitter.
“Because of this law and the many others that preceded it, attacking both families and companies, SpaceX will now move its HQ from Hawthorne, California, to Starbase, Texas,” the SpaceX CEO said when referring to Governor Newsom signing AB1955, which bans schools from making rules requiring parental notification if a child identifies as transgender.
“A lot of families and companies will move out of California because of this law.
Who would want to risk the state taking away their kids?”
SpaceX already has significant operations in Texas, and the move to Starbase aligns with its ongoing expansion in the state.
Meanwhile, Austin continues to grow as a tech hub, attracting numerous companies with its favorable business environment and quality of life.
The relocations reflect Musk’s ongoing strategic shifts to Texas, where he has previously moved Tesla’s headquarters and resides himself.
These moves will further boost Texas’s position as a key player in the technology and aerospace industries.
The move aligns with a broader trend of companies leaving California for more business-friendly environments like Texas.
According to the California Policy Center, over 120 companies have relocated from California to Texas since 2005.
“We see a lot of high-profile tech companies that people have heard of, like Elon Musk’s fleet of firms. But it’s not just a tech boom.
We see McLaren, the luxury sports car company, and others relocate.
People are moving, and companies are moving, says Alexandra Suich Bass, Senior Correspondent for The Economist.
“I think to a lot of people outside of Texas and even within it, there’s not necessarily a sense of how broad-based the boom is occurring in the state and how long lasting it might be.
And it has real national significance because as population growth stagnates in America, Texas is really the engine for the economy and population growth.”
What are your thoughts on California companies and residents alike exiting the state for Texas?
Do you know anyone who has moved? Leave your thoughts below.
Also Read: California Now Has Massive Departures As Hundreds of Thousands Leave
Other Economy News Today
A massive California company is now cutting 300 jobs after already eliminating a total of 700 roles earlier this year.
Salesforce has now confirmed the company’s second wave of mass layoffs from the California-based tech company.
The latest cuts are part of the company’s ongoing effort to streamline its operations, Bloomberg reported Monday (July 15).
Without specifying the number of layoffs, a Salesforce spokesperson told Bloomberg: “Like any healthy business, we continuously assess whether we have the right structure in place to best serve our customers and fuel growth areas.
In some cases that leads to roles being eliminated.”
At the end of January, the firm had 72,682 employees, according to the report.
When Salesforce laid off 700 employees — or about 1% of its workforce — in January, the cuts were made across the company, the Wall Street Journal reported at the time.
The report suggested that because the company still had 1,000 jobs open, those cuts were a routine adjustment of the workforce and an effort to redirect spending to other areas.
Salesforce made a bigger adjustment in January 2023, cutting 8,000 positions — or 10% of its workforce — while pointing to a slowdown in customers’ buying.
“Our customers are taking a more measured approach to their purchasing decisions,” Salesforce CEO Marc Benioff wrote in a January 4, 2023, letter to employees.
The latest round of layoffs comes at a time when artificial intelligence (AI) is playing a role in recent tech sector job cuts.
Layoffs in the tech industry for the year exceeded 100,000 as of Friday (July 12), with a portion being attributed to companies shifting their focus to AI, Seeking Alpha reported Sunday (July 14), citing data from the tracker Layoffs.fyi.
On Tuesday (July 9), UiPath, a provider of AI-powered enterprise automation technology, said that it would lay off 10% of its global workforce of 4,200 as part of a restructuring aimed at managing its operating expenses.
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Also Read: Retirees Will Now Receive More Money For Social Security
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