Oracle Lured to Texas by Lower Payrolls and Labor Pool

[TexasTowelie]

Oracle Corp.’s surprise decision to shift its headquarters to Texas from California marks a strategic realignment for the Silicon Valley stalwart that’s likely to yield long-term financial benefits such as lower payroll costs and the potential to more easily recruit future employees.

The world’s second-largest software maker said last week that it would no longer designate its longtime base in Redwood City as its main office, ending an era for a company that helped define the technology industry through the 1980s and 90s. The embrace of Texas seems designed to curtail costs over time, in contrast to the San Francisco Bay Area, which has grown increasingly expensive for corporate payrolls and individuals.

Hired, a company that matches companies with tech employees, found in a 2020 analysis that the average tech worker in the Bay Area made $155,000 this year. Average tech salaries in Austin jumped 10% to $137,000.

Oracle has a campus in Austin, opened in 2018 to local fanfare, which it said could eventually house as many as 10,000 workers. Larry Gigerich, a consultant who worked with Oracle in 2013 when it expanded its Texas workforce even before building the campus, said the company was keen to increase its presence there because even then competition for labor had grown intense and expensive in California.

Read more: https://www.bloomberg.com/news/articles/2020-12-21/oracle-lured-to-texas-by-lower-payrolls-and-labor-pool

[jimfields33]

1. 137,000 dollars goes a heck of a lot further then 155,000 in San Francisco

The workers will do better weirdly enough.

[Javaman]

2. and housing prices here in Austin are skyrocketing because of all the tech coming here.

as soon as my 1310 sqft house hits 500k, I'm selling and retiring.