Silicon Valley’s ongoing exodus is a precautionary sign for the state’s future, former Cisco CEO John Chambers told CNBC thursday.
“We’re in trouble. We are a state that takes a legal approach, it is a smart state to do business,” Chambers, who founded JC2 Ventures, said in an interview with “Squawk Alley. “”You see a lot of corporations thinking about leaving and, worse, none of my start-ups have plans to come to California. “
“If California is careful, it will lose its leadership and the jobs created with it,” he added.
Founders, executives and technical workers of all ranks, founded in Silicon Valley, left the region in an exodus caused by the Covid-19 pandemic. As they do not move to a workplace every day, other people are looking for less expensive rent, greater area and tax decline.
Among them are Tesla and SpaceX leader Elon Musk, who proved last year that he had moved to Texas, their corporations still maintain their main operations in California. Palantir co-founder Joe Lonsdale also announced a move from the Bay Area to Austin, Texas.
Some corporations also participate, either by shaking their heads or allowing workers to continue operating remotely long after the pandemic is over. Oracle, one of Silicon Valley’s oldest hits, has replaced its headquarters in Redwood City, California, to Austin, Texas Hewlett Packard Enterprise has announced that it will move its headquarters from San Jose, California, to Houston, Texas. Data analytics software company Palantir Technologies has also moved its headquarters to Denver, Colorado, from Palo Alto, California.
Hordes of founders and investors, as well as Keith Rabois, have also recently moved to Miami, due to mayor Francis Suarez’s great Twitter drive.
The exodus from Silicon Valley can bode well for other US states. But it’s not the first time They can get merit from wealth, Chambers said.
“Does this opportunity create opportunities for Texas, North Carolina, Ohio, the state of my home in West Virginia?Of course,” he said. We want to create the right environment for new businesses and we learned that with the pandemic you can put your resources anywhere. “
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