“It might feel like a sudden decision, but it rarely ever is,” said Colin Yasukochi, executive director of CBRE’s Tech Insights Center. He added that it is difficult for any company to relocate its entire workforce at once, especially out of state, without causing serious disruptions — so any significant structural changes take place gradually, in phases.
“The role of the headquarters doesn’t mean the same thing it once did,” Yasukochi said. “Now, you might be able to maintain a fairly large workforce in one place while having your administrative base elsewhere for tax or regulatory advantages.”
Case in point: another Musk company, Tesla. In 2021, it moved its headquarters to Austin, in what The New York Times described as a “blow to California.” But just two years later, the tech mogul returned to the Bay Area and opened Tesla’s “global engineering headquarters” in Palo Alto, which is now also home to engineers from X and another of his companies, xAI.
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