• Oracle Corporation is not the only technology company to relocate from California.
• Unlike Texas or any other states, California currently has the highest rate of personal income tax across the United States.

Oracle Corporation has made it to the headlines after announcing to move its headquarters from Silicon Valley, California to Austin, Texas. The high taxes imposed in California coupled with workplace shifts stemmed by the COVID-19 pandemic are believed to be the key factors behind the recent development.

Since its inception in 1977, Oracle has emerged to become a leading cloud technology company. The company is also known for developing the first-of-its-kind autonomous database which allows customers to secure and organize their data efficiently. Apart from having offices in California and Texas, the Oracle has offices in Burlington, Orlando, Seattle, and Santa Monica and comprises of around 135,000 employees.

It is also worth mentioning that Oracle had previously shifted its annual conference to Las Vegas from San Francisco. According to the company, the recent relocation of its headquarters will allow its employees to choose their office locations while continuing to work from home, either full-time or part-time.

The COVID-19 pandemic has caused various organizations to reconsider their location for head offices. Additionally, the widespread adoption of remote working practices has compelled some businesses to question whether to pay rent for central offices.

Oracle Corporation is not the only technology company to relocate from California. In fact, Hewlett Packard Enterprise Company, a multinational enterprise information technology giant is moving its headquarters to Houston while Palantir Technologies has already shifted its head offices to Denver.

While corporate concerns such as these are significant, there may be simpler reasons for shareholders and founders to relocate from California. Unlike Texas or any other states, California currently has the highest rate of personal income tax across the United States.

Source Credits –

https://www.theverge.com/2020/12/13/22172610/oracle-moves-headquarters-california-texas-hewlett-packard-tesla (original link)

https://www.techradar.com/news/oracle-is-the-latest-tech-giant-to-quit-silicon-valley (referred link)