Good news! One of California’s tech giants is expanding! The bad news? Awww, shucks — you’re way ahead of me.
Yup, the expansion is NOT in California. It’s in Austin, Texas. No surprise, as Oracle already had set up an operation down there in recent years. See the “Business Relocation Coach” article below and the link to the full Austin article.
One interesting aspect caught my eye. The 2013 move to Texas received some subsidies from both the state and local governments. Combined that windfall came to $1,067,000 — about $5,335 per employee. To get that subsidy, the company had to commit to not only hiring 200 employees (they ended up hiring FAR more), but to spending at least $5.4 million on real estate improvements. While doubtless the windfall was welcome by the corporation, it’s not nearly enough to make a company expand outside of California, where the HQ is. Other factors (most the result of policies put in place by our CA state and local governments) were much bigger costs that the company faced.
In announcing this latest expansion, Oracle said they were expanding their Austin work force 50%, but were not forthcoming with how many employees currently work in the Austin area. The local Chamber of Commerce estimates the current Oracle employment number at between 1,000 to 2,000.