Hewlett Packard Enterprise leaving Silicon Valley, moving to Texas
Hewlett Packard Enterprise on Tuesday announced that it would be shifting away from Silicon Valley and relocating its headquarters from San Jose, California, to Houston, Texas.
Credit: HPE
In its fourth quarter earnings report, HPE said that Houston is the company's largest U.S. employment hub and would be an "market to recruit and retain future diverse talent." The company is also constructing a new campus there.
According to CNBC, HPE will keep its San Jose campus and will consolidate some of its Bay Area locations.
HPE was founded in 2015 as part of the splitting of Hewlett-Packard. It offers enterprise and financial services, while HP Inc. maintains the personal computer and printer divisions of the initial Hewlett-Packard company.
Hewlett-Packard itself was one of the founding companies of Silicon Valley, and the garage it was started in is a California historical site dubbed "the birthplace of Silicon Valley." Even Apple Park, Apple's latest headquarters, was built on land that belonged to HP.
HPE isn't the only company shifting its focus away from Silicon Valley. Dropbox is said to be in the midst of a move to Austin, Texas, and Palantir Technologies relocated its headquarters to Denver, Colorado from the Bay Area.
Credit: HPE
In its fourth quarter earnings report, HPE said that Houston is the company's largest U.S. employment hub and would be an "market to recruit and retain future diverse talent." The company is also constructing a new campus there.
According to CNBC, HPE will keep its San Jose campus and will consolidate some of its Bay Area locations.
HPE was founded in 2015 as part of the splitting of Hewlett-Packard. It offers enterprise and financial services, while HP Inc. maintains the personal computer and printer divisions of the initial Hewlett-Packard company.
Hewlett-Packard itself was one of the founding companies of Silicon Valley, and the garage it was started in is a California historical site dubbed "the birthplace of Silicon Valley." Even Apple Park, Apple's latest headquarters, was built on land that belonged to HP.
HPE isn't the only company shifting its focus away from Silicon Valley. Dropbox is said to be in the midst of a move to Austin, Texas, and Palantir Technologies relocated its headquarters to Denver, Colorado from the Bay Area.
Comments
But talking about a state like Colorado as "ruined" is pretty funny, given the concentration of wealth and entrepreneurship here. My home state of Wisconsin, tho... now there's a backwater. I have no desire to ever return. Beautiful scenery, especially up north, but culturally... scary place.
And on the face of it these words don't make sense. People are leaving California because of the high taxes. And the taxes are high mostly because of California's trillion dollar pension obligations. As a result, California will have to raise taxes higher, resulting in a vicious circle and potentially the inability for California to pay its debts. Whereas Texas will get more young workers who pay taxes resulting in a better economy and tax base for them. The economy and population of Texas is growing, so it's hard to believe the claim above that "Texas will be ruined."
The good news is that California isn't the worst state for funding its pensions. It's only the sixth worst. I didn't mention bankruptcy because it's not at all clear that California will go bankrupt, and also because bankruptcy isn't a legal option. Federal Bankruptcy Code prohibits US States from declaring bankruptcy, although the Bankruptcy Code could be modified. However the US Supreme Court supersedes even Congressional Law, and in 1977 the Supreme Court said, "a state cannot refuse to meet its legitimate financial obligations simply because it would prefer to spend the money to promote the public good rather than the private welfare of its creditors." It would be difficult understanding how a State Bankruptcy would be overseen... would someone in the US Government manage the State's budget, laws and taxes? The US Supreme Court says States are Sovereign and cannot be run by a Federal agent. I would think that if a US State modified its constitution to allow a Federal Takeover, that would permit the Feds to run the State.
I'm not an American so I have no stake in this debate. But I do relish all constitutional crises because they tend to find solutions that answer difficult questions.