In a recent email to employees, X CEO Linda Yaccarino announced that the company would be closing its longstanding San Francisco office and relocating employees to various other locations within the Bay Area. The announcement, however, did not mention any plans for a move to Texas, despite previous speculations surrounding the issue.

According to reports from The New York Times, Yaccarino stated that the office closure would take place over the next few weeks. Employees will be transitioned to a shared engineering space in Palo Alto, which is also utilized by xAI, as well as other designated locations in San Jose.

The decision by X to close its San Francisco office comes amidst a mixed relationship between the company and its home base, particularly since Musk's takeover in 2022. Musk, known for his opinions on remote work, had initially banned employees from working remotely when he assumed control of the company. Additionally, he had ordered many Twitter employees back to the office in San Francisco's mid-Market neighborhood.

It is worth noting that despite Musk's criticism of San Francisco and its elected leaders, he had previously expressed intentions to keep X's headquarters within the city. In a statement, he emphasized the company's commitment to San Francisco, highlighting the offers and incentives made by other cities to entice X to relocate. However, recent events suggest a potential change of plans.

Reports from the San Francisco Chronicle in July indicated that X's landlord was actively seeking to sublease a significant portion of the company's 800,000 square-foot headquarters. This development, paired with Musk's recent hints about a possible move to Austin, Texas, raises questions about X's future in the city.

By relocating employees to various offices across the Bay Area, X aims to maintain its presence in the region while potentially exploring new opportunities. The decision reflects the ongoing challenges faced by San Francisco as several companies have left or are proceeding with plans to relocate.

As X prepares to close its San Francisco office and disperse its workforce, Yaccarino's email serves as a reminder of the company's commitment to adapt and navigate the changing dynamics of the tech industry.