The ongoing exodus of Silicon Valley is a warning sign for the future of the state, Cisco vice president John Chambers told CNBC on Thursday.
“We’re in trouble. We’re a state that takes a fair approach, it’s not a good state for doing business,” Chambers, founder of JC2 Ventures, said in an interview “Squawk Alley ”. “You see a lot of companies thinking about leaving and, even worse, none of my startup companies are thinking of coming to California.”
“If California is not careful, they are going to lose the leadership and the jobs that it created,” he said.
Founders, activists and technical workers of all levels, usually based in Silicon Valley, have been evacuating the area in an exodus exploding with the whole disease. -dissolved Covid-19. Because they do not go into the office every day, people are looking for cheaper rent, more space and lower taxes.
Among them are Tesla and SpaceX chief Elon Musk, who last year confirmed his move to Texas, although his companies still maintain their core operations in California. Palantir co-founder Joe Lonsdale announced a move from Bay Area to Austin, Texas.
Some companies are also getting ahead, either moving their head office or allowing employees to continue working long distances after the pandemic has ended. Oracle, one of Silicon Valley’s oldest success stories, has moved its corporate headquarters from Redwood City, California to Austin, Texas. Hewlett Packard Enterprise announced that it will move its headquarters from San Jose, California, to Houston, Texas. The data analysis software company Palantir Technologies moved its headquarters to Denver, Colorado from Palo Alto, California.
A number of founders and investors, including Keith Rabois, have recently moved to Miami, in part due to the massive Twitter push of Mayor Francis Suarez.
The Silicon Valley exodus could be good for other states across the United States that gain access to wealth, Chambers said.
“Does this opportunity create opportunities for Texas, North Carolina, Ohio, my home state of West Virginia? Of course,” he said. “You have to create the right environment to get started and we’ve learned that with the pandemic, you can put your resources anywhere. “
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