Tesla CEO Elon Musk is moving the headquarters of his social media platform X (formerly Twitter) from San Francisco, California, to Austin, Texas. The company is leaving the city after 18 years, first setting up its offices there in 2006.
According to The New York Times, yesterday, the remaining San Francisco employees will relocate to Palo Alto and San Jose, California, and the new headquarters will be in Austin, Texas.
Last month, Musk announced on his X account that he would relocate X’s and SpaceX’s headquarters to Austin, Texas. He cited California Governor Gavin Newsom’s recent signing of the transgender student rights law AB1955 as a critical reason for the move. The law prohibits school staff in California from disclosing a student’s gender identity or sexual orientation to parents or others without the student’s consent. This legislation has faced criticism from conservative groups, who argue that it infringes on parental rights.
According to reports, despite the headquarters move nearing completion, San Francisco has not shown much reaction. San Francisco Mayor London Breed stated that she met with Musk once a few months ago and exchanged texts but did not ask X to stay in the city. She said, “I’m not going to beg anybody,” adding, “My goal is to ensure that companies succeed, but I’m not going to compromise the city’s values or policies to do it.”
One reason San Francisco hasn’t tried to stop X from leaving is the change in the company’s significance. In the past, when Twitter was still active, there was hope that the company would bring thousands of jobs and boost the local economy. At its peak, Twitter grew from a small team of hundreds to over 7,000 employees, becoming a symbol of San Francisco.
However, after the COVID-19 pandemic, many employees began working remotely, leaving the office primarily empty. Following Musk’s acquisition of the company in October 2022, X’s status has diminished significantly. Nearly 66% of the workforce has been laid off or left, and the company’s declining revenue has had little positive impact on the local economy.
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