X Plans Office Closure in San Francisco, Following Elon Musk's Headquarters Relocation to Texas
ICARO Media Group
In a recent development, X, the social media company formerly known as Twitter, is reportedly set to close its San Francisco office in the coming weeks. This decision follows CEO Elon Musk's announcement of relocating X's headquarters to Texas, as part of a clash with California Governor Gavin Newsom over the state's controversial student gender identity law.
X CEO Linda Yaccarino addressed the office closure in a staff memo on Monday, affirming that it was a strategic decision for the long-term benefit of the company. Yaccarino acknowledged the impact this would have on San Francisco-based employees and assured them that leadership was actively working on plans, including transportation options, for those directly affected.
The operations of X in the Bay Area will be shifted to new primary locations, including an existing office in San Jose and a new engineering-focused shared space in Palo Alto, which will house Musk's artificial intelligence startup, xAI.
Elon Musk's motivation behind moving X's headquarters from California to Texas was fueled not only by the clash with Governor Newsom over the gender identity law but also by his criticism of the living conditions in crime-ridden San Francisco. Musk's frustrations were expressed on X, stating, "Have had enough of dodging gangs of violent drug addicts just to get in and out of the building."
The decision to close the San Francisco office comes in the wake of another ongoing legal battle for Musk. He recently filed a lawsuit against OpenAI and its co-founders, Sam Altman and Greg Brockman, claiming deception and betrayal. This lawsuit follows Musk's previous litigation against the company behind ChatGPT, which he later dropped.
The lawsuit against OpenAI alleges that Musk was misled into investing more than $44 million in the startup's early years. Musk's lawyers argue that the company strayed from its initial mission of developing advanced AI for the benefit of mankind in favor of personal enrichment, including a tie-up with key investor Microsoft.
As X prepares for major changes, including the closure of its San Francisco office and the relocation of its headquarters, the impact on employees and the future direction of the company remains to be seen.