Social media company X will reportedly move its headquarters out of San Francisco — but not in favor of Texas, as owner Elon Musk indicated last month.
X employees received a memo from CEO Linda Yaccarino saying the company would close its office at 1355 Market St. “over the next few weeks,” The New York Times reported.
Some employees will occupy an unidentified building in San Jose, while the engineering team will have its digs in Palo Alto alongside startup xAI, also owned by Musk.
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It's the second time in less than a month that news of the company's relocation has circulated, but the company memo offers more details than Musk's posts have.
“This is an important decision that impacts many of you, but it is the right one for our company in the long term,” Yaccarino wrote, according to the Times.
X’s decision to remain in California was a strategic one, Yaccarino wrote. X missed some monthly rental payments at 1355 Market St. to landlords JPMorgan Chase and Shorenstein Properties, the NYT reported.
In mid-July, Musk posted to social media that X and SpaceX, the private space company he founded in 2002, were leaving California and heading to Texas.
“Have had enough of dodging gangs of violent drug addicts just to get in and out of the building,” Musk wrote.
In early July, the San Francisco Chronicle reported that X put its entire 800K SF headquarters up for sublease.
At that time, Musk said X was inquiring about 500K SF of office space in Austin, while SpaceX would set up shop in Brownsville, Texas. Thus far, SpaceX hasn't altered its plans to set up shop in Starbase, a $100M office building under development in Brownsville.
CORRECTION, AUG. 7, 2:45 P.M. PT: This story has been updated to accurately reflect the building ownership and length of time X missed rental payments on 1355 Market St.
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