Silicon Valley is set to lose its heart as Hewlett-Packard Enterprises (NYSE: HPE) prepares to relocate its headquarters to Houston, Texas. The decision comes after the announcement that the computing giant would split into two new companies, it has been noted that HP's hardware division, HP Inc (NYSE: HPQ), will remain rooted in Silicon Valley.
Both Hewlett Packard and Silicon Valley can trace their origins to the same garage in Palo Alto, California, where Bill Hewlett and David Packard founded their company and developed their very first product. 82 years later, half of massive corporation that grew from Hewlett and Packard's tiny garage is migrating to Houston.
"As we look to the future, our business needs, opportunities for cost savings, and team members' preferences about the future of work, we are excited to relocate HPE's headquarters to the Houston region," said HPE CEO Antonio Neri.
HPE, one of two firms formerly comprising the Hewlett-Packard Company, announced on Tuesday that it was seeking to relocate to Texas. The move is coinciding with the consolidation of HP's remaining offices in the area into its San Jose campus. HP Inc will remain in Silicon Valley.
The move to Texas has set a precedent from similar moves made by fellow tech companies. Already, dozens of tech firms have flocked to Texas for tax purposes, with a "Silicon Hills" forming in Austin as several tech companies set up shop within the city.
Notably, Tesla's (NASDAQ: TSLA) Chief Executive Officer Elon Musk has told his friends and associates that he plans to move to Texas, CNBC reports. Musk already spends most of his time in Austin, Texas, where Tesla and his tunnel start-up Boring Company have operations, and Boca Chica, Texas, where SpaceX is located.
These rumors reported by CNBC also back-up Musk's tweet made back in May in response to coronavirus pandemic restrictions in California: "Tesla will now move its [headquarters] and future programs to Texas/Nevada...If we even retain Fremont [California] manufacturing activity at all, it will be dependent on how Tesla is treated in the future. Tesla is the last carmaker left in [California.]"
HPE's move is expected to create thousands of new jobs in the Houston area, and according to the company, there will also be no layoffs as the company shifts operations.