[19 / 1 / 17]
https://www.mysanantonio.com/business/article/austin-loses-tech-companies-18541636.php
Austin sees mass exodus of ex-Silicon Valley tech companies, here's why
Is the big tech trend in Austin over?
Austin's potential as a successor to Silicon Valley is in jeopardy. Over the years, Austin has seen a huge migration of tech companies moving to the city, from billionaire owners of Twitter (X) to the largest search engine in the world. But many startups are now choosing to leave the capital city they once flocked to because of the rising cost of living, low funding, and lack of diversity, according to TechCrunch.
On Thursday, December 7, the cloud computing company VMWare announced it was laying off 577 employees in Austin as part of a nationwide job reduction to cut costs, according to the Austin American-Statesman.
TechCrunch is reporting that startup founders, like Techstars Managing Director Amos Schwartzfarb, are announcing their decisions to leave Austin's "lackluster" startup scene. This is only a few years removed from tech investors and startup founders bringing their businesses to Austin in droves, living it up with lower rent (compared to California and NYC), the young and "hip" population, and the beauty of no state income taxes.
After the COVID-19 pandemic, more tech companies chose to work from home, emptying their downtown offices for at-home desks. Layoffs also began to save money with the rumors of a nationwide recession and companies needing to scale back costs.
Austin sees mass exodus of ex-Silicon Valley tech companies, here's why
Is the big tech trend in Austin over?
Austin's potential as a successor to Silicon Valley is in jeopardy. Over the years, Austin has seen a huge migration of tech companies moving to the city, from billionaire owners of Twitter (X) to the largest search engine in the world. But many startups are now choosing to leave the capital city they once flocked to because of the rising cost of living, low funding, and lack of diversity, according to TechCrunch.
On Thursday, December 7, the cloud computing company VMWare announced it was laying off 577 employees in Austin as part of a nationwide job reduction to cut costs, according to the Austin American-Statesman.
TechCrunch is reporting that startup founders, like Techstars Managing Director Amos Schwartzfarb, are announcing their decisions to leave Austin's "lackluster" startup scene. This is only a few years removed from tech investors and startup founders bringing their businesses to Austin in droves, living it up with lower rent (compared to California and NYC), the young and "hip" population, and the beauty of no state income taxes.
After the COVID-19 pandemic, more tech companies chose to work from home, emptying their downtown offices for at-home desks. Layoffs also began to save money with the rumors of a nationwide recession and companies needing to scale back costs.
