Is There a Mass Exodus of Former Silicon Valley Tech Companies From Austin, Texas?

'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,' according to a local news site in Texas.

'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... In 2022, Meta abandoned plans to move into the biggest skyscraper in Austin, and Google froze plans to move into 35 floors of a different downtown building, despite paying rent to the developer, according to the Washington Post...

In January, CEO Don Ward of Laundris, a B2B enterprise industrial software platform, announced he would be relocating his company to Tulsa because it reminded him 'of where Austin was 10 years ago in terms of the tech ecosystem being built,' according to Tulsa World. Last month, startup unicorn Cart, an e-commerce business, announced it was moving its headquarters back to Houston after relocating to Austin in late 2021, according to TechCrunch.

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