The continued exodus of Silicon Valley is a warning signal for the way forward for the state, former Cisco CEO John Chambers advised AnotherBillionaire Information on Thursday.
“We’re in hassle. We’re a state that’s taking an entitlement strategy, it is not an excellent state to do enterprise,” Chambers, who based JC2 Ventures, mentioned in a “Squawk Alley” interview. “You are seeing many firms interested by leaving and, even worse, none of my start-ups are interested by coming to California.”
“If California is not cautious, they’ll lose their management and the roles created with it,” he added.
Founders, executives and tech workers of all ranks, who’re usually based mostly in Silicon Valley, have been shifting out of the world in an exodus sparked by the Covid-19 pandemic. Since they are not going into an workplace every single day, individuals are searching for cheaper lease, more room and decrease taxes.
Amongst them is Tesla and SpaceX chief Elon Musk, who confirmed final yr that he moved to Texas, although his firms nonetheless preserve their main operations in California. Palantir co-founder Joe Lonsdale additionally introduced a transfer from the Bay Space to Austin, Texas.
Some firms are additionally getting on board, both shifting their headquarters or permitting workers to proceed working remotely lengthy after the pandemic ends. Oracle, one in every of Silicon Valley’s older success tales, modified its company headquarters from Redwood Metropolis, California to Austin, Texas. Hewlett Packard Enterprise introduced it would relocate its headquarters from San Jose, California, to Houston, Texas. Information analytics software program firm Palantir Applied sciences additionally moved its headquarters to Denver, Colorado from Palo Alto, California.
Hordes of founders and buyers, together with Keith Rabois, have additionally lately relocated to Miami, partly because of Mayor Francis Suarez’s massive Twitter push.
The Silicon Valley exodus may bode effectively for different states throughout america that may get in on the wealth, Chambers mentioned.
“Does this chance create alternatives for Texas, North Carolina, Ohio, my house state of West Virginia? Completely,” he mentioned. “You need to create the fitting setting for start-ups and we have realized that, with the pandemic, you possibly can put your assets anyplace.”
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