Musk's X is closing its San Francisco headquarters: Here's why
Elon Musk-owned social media company, X, is preparing to shut its primary San Francisco office in the coming weeks. The information was revealed in an internal email from CEO Linda Yaccarino that was obtained by The New York Times. Yaccarino's email also detailed plans for relocating staff to existing offices in San Jose and a new engineering-centric office in Palo Alto.
Yaccarino addresses employee concerns
In her email to the staff, Yaccarino acknowledged the impact of this decision on employees, stating, "This is an important decision that impacts many of you, but it is the right one for our company in the long term." This move follows Musk's announcement last month about relocating the company's headquarters to Texas in response to California's SAFETY Act. This legislation prohibits schools in California from mandating that teachers inform parents if a student changes their gender identity or pronouns.
X's history and relationship with San Francisco
X, previously known as Twitter, was founded in San Francisco in 2006. The company moved its headquarters to the city's Mid-Market neighborhood in 2012 after securing a payroll tax break deal with local legislators. Since Musk's acquisition of Twitter in 2022, X has experienced a strained relationship with its landlord Shorenstein due to missed rent payments and cost-cutting measures.
Legal troubles and friction with local authorities
X also faced legal action from the city's Department of Building Inspection for installing a giant flashing X on their building and allegedly converting office space into hotel rooms for employees. Although this lawsuit was later dismissed, it intensified the ongoing friction between X and local authorities. Despite these issues, Musk had previously pledged to keep the company's headquarters in San Francisco.
