The non-stop exodus of Silicon Valley is a warning sign for the future of the state, former Cisco CEO John Chambers told CNBC on Thursday.
“We’re in tormenter. We’re a state that is taking an entitlement approach, it’s not a good state to do business,” Chambers, who founded JC2 Ventures, said in a “Screech Alley” interview. “You’re seeing many companies thinking about leaving and, even worse, none of my start-ups are thought about coming to California.”
“If California isn’t careful, they’re going to lose their leadership and the jobs created with it,” he combined.
Founders, executives and tech employees of all ranks, who are normally based in Silicon Valley, have been moving out of the extent in an exodus sparked by the Covid-19 pandemic. Since they’re not going into an office every day, people are in search of cheaper rental, more space and lower taxes.
Among them is Tesla and SpaceX chief Elon Musk, who confirmed terminating year that he moved to Texas, though his companies still maintain their major operations in California. Palantir co-founder Joe Lonsdale also advertised a move from the Bay Area to Austin, Texas.
Some companies are also getting on board, either shifting their headquarters or allowing staff members to continue working remotely long after the pandemic ends. Oracle, one of Silicon Valley’s older success fables, changed its corporate headquarters from Redwood City, California to Austin, Texas. Hewlett Packard Enterprise propounded it will relocate its headquarters from San Jose, California, to Houston, Texas. Data analytics software company Palantir Technologies also deeded its headquarters to Denver, Colorado from Palo Alto, California.
Hordes of founders and investors, including Keith Rabois, contain also recently relocated to Miami, partly due to Mayor Francis Suarez’s big Twitter push.
The Silicon Valley exodus could betoken well for other states across the United States that can get in on the wealth, Chambers said.
“Does this chance create opportunities for Texas, North Carolina, Ohio, my home state of West Virginia? Absolutely,” he said. “You should prefer to to create the right environment for start-ups and we’ve learned that, with the pandemic, you can put your resources anywhere.”
Subscribe to CNBC on YouTube.