Covid-19 Pandemic Loosens Silicon Valley’s Tight Grip on Tech Industry

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High-profile departures are causing some soul searching in Silicon Valley—taking some sheen off the area’s reputation as the unparalleled tech capital

By Eliot Brown Close Eliot Brown and Aaron Tilley Close Aaron Tilley Dec. 13, 2020 4:14 pm ET For much of the past decade, the San Francisco Bay Area has strained to absorb the torrid growth of the tech sector. As head counts of highly paid engineers swelled, housing costs soared, traffic gridlock rose and homeless tents spread on city streets.

These high-profile departures are causing some soul searching in Silicon Valley—taking some sheen off the area’s reputation as the unparalleled tech capital. While reasons vary, many moves appear to have been sparked by the Covid-19 pandemic that has reshaped notions of where and how we work, and companies, investors and employees are generally moving to places that are warmer, with lower taxes and cost of living.

Silicon Valley Departures Once offices reopen, even if a large chunk of workers stay remote, many investors and executives say the value of proximity is so high that they expect the region’s prominence to continue. That clustering is considered a major reason for Silicon Valley’s dominance. Large companies grow off each other, with engineers leaving established companies to create their own startups, and rivals constantly poaching from one another. Investors often say they are more comfortable funding companies in their backyards.

The result has been soaring prices for housing and cost of living, which in turn fuel ever higher costs for paying employees.

 

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Not sure who is soul searching. But departure of 'has been' company that can no longer compete against new technology disrupters is a normal Darwinian cycle in the Silicon Valley. When a company no longer innovates, only way to survive is to cost down by moving or going offshore.

California is a high-tax, declining shithole of a state. When the census is finally tallied they stand to lose at least three House seats because of people with means leaving in droves. Another 10 years and CA will be completely overrun with illegal aliens and poor people.

Left progressive liberalism is a filthy disease everyone eventually flees from

Local talent is very limited in Texas, Mississippi, Georgia compared to California- Berkeley, Stanford, UC system.

Cldnt have happened sooner

More good news please(((

they'll make wherever they go turn to shit.

I invested R10,000 and got a return of R100,000.00 in 7 days trading she's transparency and accountability has always been the best appreciate all his efforts with the little startup of $300 with joy all over me after withdrawing $3000 with the help of lisawellington0

Oracle gave us Marc Benioff. Their job is now done. They're free to go. We still have too many tech campuses to count.

The companies in this article are high profile and near failures at diversity hiring. I can appreciate them just as easily from the distance for what their worth

Are they all moving to Texas because of the great cyber security there? They are protecting all our national secrets, you know.

Russians churches election fraud while millions sit with no income priorities need shakeup

I wish most leave so it’s affordable and i can move there because it is BEAutiful there!

PANDEMIC IS GLOBAL WARMING CALIFORNIA IS RULED BY NUCLEAR FOSSIL FUEL POLICIES CAP AND TRADE BROUGHT IN OVER $3.5 BILLION DOLLARS $100 BILLON IN FIRE DAMAMGES $100 BILLION IN FLOOD DAMAGES OVER 100 PEOPLE BURNED ALIVE OVER 100 PEOPLE DROWNED EXECUTIVE ETINCTION EXECUTION

“Silicon Valley’s place in global technology is still unrivaled. Five of the eight most valuable U.S. companies are based in the region. Major employers like Facebook Inc. and Google parent Alphabet Inc. have added office space in the region even during the pandemic.” eliotwb

No worry. Silicon Valley losing one big employer after another. 1st Tesla and now Oracle. Other companies are anxious to leave this overpriced mecca also.

Not buying it. NWO is transplanting in Texas to turn the state blue. Guess what kind of people follow along. If we lose Texas, it's over.

Silicon Valley is just too successful for much too long. I look at this as a charity act. A Blue State helping a Red State. So much money in this blue hybrid region raises the cost of living to beyond manageable levels. Realize this is typical of Blue States...they thrive!

Has anyone tried those mint chocolate ice cream sandwiches at netflix? Do they still have those?

Toyota's game-changing solid-state battery en route for 2021 debut Next generation energy Hydrogen society and energy Hydrogen car To join hands with Toyota Is it an American company or a Chinese company? Or is it Europe? Another country?

Who cares? You just told the future First Lady to drop the Dr. title that she worked hard for. You should drop an apology.

“When the going gets tough, the tough get going.” Looking forward to the strong that remain and thrive in the absence of the weak hands that clogged the system.

The headline is misleading. As the article itself states, Silicon Valley is unrivaled and the departures are relatively few compared to what remains.

The communist governor of São Paulo entered into a partnership between the Chinese communist party and a supreme Brazilian communist court to apply Xi Jinping's coronaVac without ANVISA approval.

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