Yet another big company has moved to Texas. Hewlett Packard Enterprises, the company that created Silicon Valley, has motioned to move their headquarters to Houston, Texas.
In the words of HPE, “HPE has made the decision to relocate its headquarters from San Jose, California, to Houston, Texas. HPE’s largest U.S. employment hub, Houston is an attractive market to recruit and retain future diverse talent, and is where the company is currently constructing a state-of-the-art new campus. The Bay Area will continue to be a strategic hub for HPE innovation, and the company will consolidate a number of sites in the Bay Area to its San Jose campus. No layoffs are associated with this move.”
The governor of Texas, Greg Abbot, congratulated HPE on its move to the Houston area by saying, “We are excited that Hewlett Packard Enterprise has chosen to call Texas home, and I thank them for expanding their investment in the Lone Star State by relocating their headquarters to the Houston region.” The governor also noted the possibilities in job growth for the state and eyed a 2022 headquarters opening for HPE.
This year’s fourth quarter earnings for HP Enterprises beat Wall Street expectations, with the company garnering profits per share. HPE also reported a revenue of $7.21 billion throughout the period.
Some have blamed the ever-growing high California income taxes are partially to blame for companies moving to Texas. With Democrats controlling both legislative chambers, it does not seem like these policies may revert.
Signs are already showing up. Weeks after the announcement, Tesla started building a Gigafactory outside of Austin, a process that would have taken around 5 years to go through extensive government checks in California.
Other companies have also jumped off the California ship to relocate to California. Although HPE remained largely silent in pinpointing why exactly it was changing headquarters, it is clear the current political environment might have given the company an impetus to change location.