Technology Company to Move Headquarters

Category: Business


Unlocking Word Meanings

Read the following words/expressions found in today’s article.

  1. competitive / kəmˈpɛt ɪ tɪv / (adj) – describing a situation in which people are trying to be better than others in an activity

    Entering a competitive industry isn’t easy.

  2. consolidate / kənˈsɒl ɪˌdeɪt / (v) – to combine together into a single thing

    The two companies will consolidate next year.

  3. notable / ˈnoʊ tə bəl / (adj) – important or worthy of attention

    The museum is notable for its collection of rare historical artifacts.

  4. hub / hʌb / (n) – the center of an activity, region, network, etc.

    New York City is considered to be the leading financial hub in the world

  5. split / splɪt / (v) – to break or divide something into smaller parts

    The students were split into five groups.


Read the text below.

Technology company Hewlett Packard Enterprise (HPE) is set to relocate its headquarters from San Jose, California, to Houston, Texas, by 2022.

In a statement, the company said that it chose to move to Houston due to the city’s diverse talents. Relocating to Texas will also save the company money because the cost of real estate and talent acquisition there is more affordable and less competitive compared to California. HPE added that it will still keep its San Jose office, where some of its San Francisco Bay area sites will be consolidated. According to the company, the move will not result in any employee layoffs.

HPE’s relocation from California is notable because the company was one of the founders of Silicon Valley, the world’s major technology and startup hub. It is home to around 2,000 tech companies, many of which are industry leaders.

Before it became HPE, the company was first known as Hewlett-Packard (HP). It was founded by business partners William Hewlett and Dave Packard in 1939. HP created its first product, a device used to test audio equipment, in the same year. In 2015, HP split into HP Inc., which manufactures printers, laptops, and personal computers, and HPE.

While HPE is the most notable company to move its headquarters from Silicon Valley, it is far from the only one. Data analytics software firm Palantir Technologies and cybersecurity firm Tanium have also left the area. Many companies have explained that the switch to remote work led them to move to states with lower costs of living, as employees are no longer required to go to their offices.

Viewpoint Discussion

Enjoy a discussion with your tutor.

Discussion A

• Do you think it’s a good idea for HPE to leave Silicon Valley? Why or why not?
• If you had a business, would you like your headquarters to stay in one location for a long time? Why or why not?

Discussion B

• Since many employees these days are working from home, do you think companies should consider continuing remote work even after the pandemic? Why or why not?
• In which industries a work-from-home setup is most suitable (e.g. tech industry, advertising industry)? Why?