X is set to close its long-standing San Francisco office and relocate employees to other Bay Area locations, according to an email from CEO Linda Yaccarino, as reported by The New York Times. This announcement follows Elon Musk’s recent threats to move X’s headquarters from California to Austin, Texas.
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Yaccarino’s email, however, does not mention Texas. Instead, she informed employees that the San Francisco office closure will occur over the “next few weeks,” with staff moving to a “shared engineering space in Palo Alto” also used by xAI, and to other “locations in San Jose.”
Since Musk’s takeover, X (formerly Twitter) has had a contentious relationship with its San Francisco base. Shortly after assuming control in 2022, Musk banned remote work and mandated a return to the mid-Market office. Additionally, Musk clashed with the city’s Department of Building Inspection over installing a giant flashing X on the building and converting office space into makeshift hotel rooms for employees. Earlier this year, The San Francisco Chronicle reported that X’s landlord sued the company over unpaid rent, though the lawsuit was later dismissed.
Despite Musk’s criticisms of San Francisco and its leaders, he had previously pledged to keep the headquarters in the city. “Many have offered rich incentives for X (fka Twitter) to move its HQ out of San Francisco,” Musk tweeted last year. “Moreover, the city is in a doom spiral with one company after another left or leaving. Therefore, they expect X will move too. We will not. You only know who your real friends are when the chips are down. San Francisco, beautiful San Francisco, though others forsake you, we will always be your friend.”
However, even before Musk’s recent threats to move to Austin, there were indications that X might leave San Francisco. In July, The San Francisco Chronicle reported that X’s landlord was seeking to sublease a significant portion of the company’s 800,000 square-foot headquarters.
