Elon Musk's social media giant X is preparing to shut down its flagship San Francisco office in the coming weeks. This development was disclosed through an internal email obtained by The New York Times.
Transition Of Employees
In an email sent to employees, CEO Linda Yaccarino said staffers will transition to existing San Jose, California offices. Additionally, X plans to open a new engineering-focused office in Palo Alto, California. It will also be shared with xAI, Musk's artificial intelligence company.
Yaccarino wrote to employees:
“This is an important decision that impacts many of you, but it is the right one for our company in the long term.”
Reason Behind The Move
Musk recently announced the relocation of X’s headquarters to Texas. This move follows a new California law that bans school districts from mandating parental notification if students alter their gender identification. Musk has strongly opposed the law, arguing that it could “force families and companies to leave California to protect their children.”
Founded in San Francisco in 2006, X, formerly Twitter, moved its headquarters to the city’s Mid-Market area in 2012. This relocation followed an agreement with local legislators to receive a payroll tax incentive. Over the years, Twitter, now X, became a prominent figure in San Francisco’s tech sector, alongside other tech giants such as Uber.
Since Musk’s acquisition of Twitter in 2022, the company has faced financial difficulties. These include missed rent payments to Shorenstein, the real estate firm managing the office space at 1355 Market Street. To cut costs, X even repurposed parts of the office into sleeping quarters for traveling employees.
Response From Stakeholders
Neither Musk nor a representative from X responded to requests for comment regarding the office closure. Additionally, Shorenstein, the real estate company, declined to provide a statement.
