X is closing its flagship San Francisco office due to shifting business strategies, raising questions about its future operations and impact on the local job market.
X, the social media conglomerate helmed by Elon Musk, is poised to shutter its San Francisco headquarters “within the forthcoming weeks,” as revealed by an internal communication acquired by The New York Times. In the missive dispatched to employees by X’s CEO, Linda Yaccarino, it was detailed that staff would be relocated to the company’s pre-existing facilities in San Jose, California. Additionally, X is set to inaugurate a new engineering-centric office in Palo Alto, California, which will be shared with xAI, Musk’s artificial intelligence enterprise.
Yaccarino emphasized the significance of this transition in her correspondence, stating, “This is a consequential decision affecting many of you, yet it is a prudent step for our company’s future.”
Last month, Musk announced plans to relocate X’s headquarters to Texas, triggered by recent Californian legislation prohibiting school districts from mandating that teachers inform parents about their children’s gender identity changes. Musk, who has had a fraught relationship with the state, argued that such laws would “compel families and businesses to depart California in order to safeguard their children.”
Founded in San Francisco in 2006, X, formerly known as Twitter, moved its headquarters to the Mid-Market area in 2012 after negotiating a payroll tax incentive with local officials. The move cemented Twitter as an emblem of the city’s burgeoning tech scene, alongside other tech giants such as Uber.
Since Musk’s acquisition of Twitter in 2022, the company has neglected rent obligations to Shorenstein, the real estate firm overseeing X’s office at 1355 Market St. Efforts to economize included repurposing portions of the office space into accommodations for traveling employees.
Neither Musk nor a representative from X responded to inquiries for comment. A spokesperson for Shorenstein also refrained from providing a statement.
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