HPE leaves Silicon Valley, relocates HQ to Texas

Tech enterprise company Hewlett Packard Enterprise is relocating its headquarters from California to Houston, Texas. Yahoo Finance's Brian Sozzi weighs in.

Video Transcript

MYLES UDLAND: In a year where we've seen so many individuals on the move, as the future of work gets contemplated, perhaps more distributed, the office maybe not what it once was, Brian Sozzi, one company is picking up and moving from Silicon Valley down to Texas.

BRIAN SOZZI: That's right, Myles. And that company is Hewlett Packard Enterprises, going from San Jose, California. They announced last night on their earnings release, they're moving to Houston, Texas. And this is pretty big. Let's keep in mind here, Hewlett Packard was founded in 1939 by Bill Hewitt and David Packard in Palo Alto. And they are seen as really the founders of Silicon Valley. So a big move here by Hewlett Packard Enterprises.

But I talked to HPE's CEO, Antonio Neri a couple months ago, and we talked about his view of the world post pandemic, and his view of his employee base post pandemic. Here's what he told Yahoo Finance.

ANTONIO NERI: We're going to live in a much more distributed enterprise than ever before. The workforce of the future will change dramatically. And so that distributed model needs to be supported by technologies that accelerate that digital transformation. So anything associated with Virtual Desktop, connectivity, obviously security, we see significant strength.

BRIAN SOZZI: And really, what Neri is saying here, Julie, is that we're going to be working potentially from anywhere after we all get vaccines, not necessarily just our home. So I'm really not surprised to see them do this. Also, keep in mind, HPE has been aggressively cutting expenses. They, by the end of fiscal 2022, they will have cut $800 million in expenses out of their model, compared to fiscal 19. Now no layoffs as part of this move. But this is a company that remains very focused on cutting expenses, improving their profits, and moving forward.

MYLES UDLAND: Sozzi, I thought it was interesting you could see, there was a fake background in that, I guess Skype or Zoom shot, whatever that was for part of that interview, I guess speaking to what the future of the office is going to look like. It's going to look like whatever background you surprised us with in the morning meeting every day at 6 o'clock. Today, of course, a festive design that we'll discuss later on in the program.