Cloud major Oracle has announced to move its California-based headquarters to Austin, Texas and cited flexibility of employee work as the key reason behind the decision.
The decision came a day after the company posted revenues of $9.8 billion in its fiscal second quarter, a growth of two per cent (on-year) and Cloud services and licence support revenues were up four per cent to $7.1 billion.
"Oracle is implementing a more flexible employee work location policy and has changed its Corporate Headquarters from Redwood City, California to Austin, Texas. We believe these moves best position Oracle for growth and provide our personnel with more flexibility about where and how they work," a company spokesperson told CNBC on Friday.
"In addition, we will continue to support major hubs for Oracle around the world, including those in the United States such as Redwood City, Austin, Santa Monica, Seattle, Denver, Orlando and Burlington, among others, and we expect to add other locations over time," Oracle said.
Founded in Santa Clara in 1977, the Larry Ellison-led Oracle is one of Silicon Valley's older success stories.
Several of the buildings on its campus are constructed in the shape of a squat cylinder -- a classic symbol in computer systems design for a database.
Hewlett Packard Enterprise (HPE) announced earlier this month to move its headquarters from San Jose, California, to Houston, Texas, citing similar reasons of flexibility.
After spending his most life in California, Tesla and SpaceX CEO Elon Musk has already relocated to Texas, calling California 'complacent'.
Criticising California's economic environment, Musk added. "If a team is winning for too long, they tend to get complacent".
Musk said that Silicon Valley was declining in relevance.