Arab Press

بالشعب و للشعب
Sunday, Apr 26, 2026

Twitter Got A Big Tax Break To Stay In San Francisco. Jack Dorsey Now Says Its Future Is No Longer In The City.

Twitter Got A Big Tax Break To Stay In San Francisco. Jack Dorsey Now Says Its Future Is No Longer In The City.

As Twitter's home city nears a vote limiting new office space construction, the company may be forced to locate its workforce elsewhere.
Nine years ago, San Francisco gave Twitter a major, controversial tax break to stay in the city, locating the social media company’s headquarters in the bleak mid-Market neighborhood. But today, after taking the money, Twitter is putting San Francisco on mute as it plans to expand outside of the city.

“Our concentration in San Francisco is not serving us any longer and we will strive to be a far more distributed workforce,” Twitter CEO Jack Dorsey said on an earnings call Thursday. “We have to build a company that’s not entirely dependent on San Francisco.”

“Sounds like something Jack would say,” San Francisco Supervisor Aaron Peskin, a frequent critic of the tech industry and one of the leaders of the board’s progressive faction, told BuzzFeed News. “Apparently, the only thing serving Twitter anymore is Donald Trump.”

When they introduced the Twitter tax break, politicians hoped it would revitalize the neighborhood and attract jobs to a city whose unemployment rate was several multiples above where it is today, nearing 10% in 2010.

As the city’s politics lurch leftward — unlike when the tax passed, Peskin’s faction now controls of the Board of Supervisors and the city will vote on a proposition limiting new office space construction in March — Twitter, which took tens of millions in tax incentives throughout the decade, is planning to spread its workforce across the globe. In recent years, the centrist policies championed by former mayors like Ed Lee have given way to an anti-corporate wave, including the election of a democratic socialist to the board in 2019, mirroring a change in the national Democratic party.

After the tax break expired as planned last May, there was little appetite in San Francisco to renew it. San Francisco voters also approved a ballot measure in 2018 that required companies with more than $50 million in annual revenue to pay an additional tax to help people who are homeless. Dorsey opposed the measure, saying it treated companies like Dorsey’s company Square unfairly compared to ones like Salesforce, whose CEO Marc Benioff backed it, and Square later sued the city over its tax bill.

Critics of Twitter’s tax break saw Dorsey’s comments on Thursday as a validation of their skepticism. “I'm not surprised to hear that they're not really prioritizing their presence in San Francisco,” David Campos, a former San Francisco supervisor who voted against the tax break when he was on the board in 2011, told BuzzFeed News. “I'm not surprised that they essentially benefited from a very generous tax policy by city government, only to turn around and say San Francisco is not a priority for us. Unfortunately, it's what many of us suspected.”

Ted Egan, San Francisco’s chief economist, said Dorsey’s statement was somewhat concerning. “It reinforces the fact that the city's had a challenge in keeping large companies in the city as they grow,” he told BuzzFeed News. To Egan, it was not a complete surprise, given the high price of doing business in the Bay Area, which faces skyrocketing housing costs. “It's not unexpected that a major tech company would choose to have a distributed workforce or grow globally, particularly when the cost of living differences between San Francisco and many other places are continuing to widen.”

Despite Dorsey’s announcement, it’s unclear how fast Twitter’s employee base will shift from the city, and finding the type of workers it’s looking for in other places may be its biggest challenge: Once an economic cluster is established, it’s hard to move. “This issue has been brought up many times in the past. But it's a very niche labor market,” Enrico Moretti, a University of California, Berkeley, economics professor and the author of The New Geography of Jobs, told BuzzFeed News. “Ultimately, the type of occupations that lend themselves to remote work is not huge.”

Twitter doesn’t predict a mass exodus anytime soon. “San Francisco will be where the majority of our employees will be based for the foreseeable future,” a Twitter spokesperson told BuzzFeed News following Dorsey’s comments. “There's incredible talent around the world and we have to be able to work in a way that supports them as employees regardless of where they live, especially when they want to build careers in their own communities.”

Not all observers were opposed to the move. “There's always blowback,” said Anna Auerbach, cofounder and co-CEO of Werk, an analytics company that enables flexible work. The benefits, she said, will outweigh the costs. “It's going to help Twitter attract a really incredible talent pool, a really diverse talent pool, and my hunch is, they're going to see some really fundamental changes when it comes to productivity improvements and culture and retention.”
Newsletter

Related Articles

Arab Press
0:00
0:00
Close
News Roundup
Strategic Saudi-Bahrain Causeway Closed Amid Security Concerns as Trump Deadline Approaches
Saudi Arabia Keeps Red Sea Oil Exports Flowing Despite Regional Tensions
Pipeline Attack Cuts Significant Share of Saudi Arabia’s Oil Export Capacity
Saudi Business Leader Abudawood Appointed Chairman of Merit Incentives Group
TotalEnergies Confirms Damage at Saudi Refinery Following Security Incident
Saudi Arabia Launches Early Construction Phase for King Salman Stadium Project
Saudi Shift Away from Longstanding Dollar Oil Framework Gains Attention Amid Iran Conflict
Türkiye and Saudi Arabia Resolve Long-Running Transit Visa Dispute
Saudi Oil Capacity and Pipeline Flows Reduced as Supply Risks Intensify
TotalEnergies Reports Damage to Saudi SATORP Refinery Following Security Incidents
Gulf States Assess Prospects of U.S.-Iran Truce as Regional Stability Efforts Intensify
South Korea Resumes Honey Exports to Saudi Arabia Following Sanitary Approval
Saudi Arabia Carries Out Sentences in Eastern Province Following Security Convictions
Saudi Sovereign Wealth Fund Backs King Street’s Regional Credit Strategy
Saudi Arabia Secures World Cup Return as Egypt Celebrates Landmark Qualification
Iran and Saudi Arabia Intensify Diplomatic Engagement Amid Regional Tensions
Russia and Saudi Arabia Open Visa-Free Travel Corridor for Citizens
Saudi Oil Output Capacity Reduced by 600,000 Barrels Per Day Amid Regional Conflict
Saudi Arabia Suspends Operations at Select Energy Sites as Precautionary Measure
Saudi Arabia Halts Operations at Multiple Energy Facilities Amid Heightened Tensions
Global Markets Jolt as Iran Signals Ceasefire Breakdown and Rising Regional Tensions
King Street Aligns with Saudi Sovereign Wealth Fund to Expand Alternative Investments in Middle East
Attack on Saudi Arabia’s Jubail Petrochemical Hub Raises Global Supply Concerns
Debate Emerges Over Saudi Strategic Decisions as Gulf Cooperation Council Dynamics Come Into Focus
Saudi Arabia Expands Full Workforce Localisation to 69 Professions in Major Labour Reform
Emerging Alliance of Pakistan, Turkey, Egypt and Saudi Arabia Signals New Regional Power Dynamic Amid Iran Conflict
Iran Linked to Strikes Across Gulf States Following Refinery Attack Escalation
Saudi Arabia Voices Concern Over Fragile US–Iran Ceasefire Stability
Starmer Warns Sustained Effort Needed to Ensure US–Iran Ceasefire Holds
Saudi Arabia’s Key East-West Oil Pipeline Targeted Following Ceasefire Announcement
Iran Targets Saudi Arabia’s East-West Oil Pipeline in Escalating Regional Tensions
Trump Warns of Civilizational Stakes as Iran Halts Negotiations
Saudi Companies Expand Remote Work Measures Ahead of Iran-Related Security Concerns
Iran Warns of Strikes on Saudi Energy Infrastructure if US Targets Its Facilities
Iran Urges Civilians to Form Human Shields Around Nuclear Sites as Diplomatic Deadline Approaches
Saudi Arabia Raises Oil Prices to Record Premiums Amid Supply Pressures Linked to Iran Conflict
Key Saudi-Bahrain Causeway Closed Amid Heightened Security Concerns Linked to Iran
Formula One Calendar Gap Explained as Fans Await Next Grand Prix
Growing Strain on the Petrodollar System Comes Into Focus Amid Iran Conflict
Reported Strike on Saudi Arabia’s Jubail Complex Raises Global Energy Supply Concerns
FedEx Introduces New Digital Tool to Streamline Imports into Saudi Arabia
Iran Claims Strike on Saudi Arabia’s Jubail Petrochemical Complex Amid Rising Regional Tensions
Taiwan to Source Oil Shipments from Saudi Arabia’s Red Sea Ports
Saudi Arabia Evacuates Riyadh Financial District as Precaution Amid Regional Tensions
Saudi Arabia Balances Ambitious Economic Vision Amid Regional Tensions and Financial Pressures
Budget Saudi Arabia Reports Strong Full-Year 2025 Financial Performance
Saudi Arabia Expands Investment in Capcom With Stake Reaching Six Percent
Saudi Arabia Assesses Significant Economic Impact From Regional Conflict Involving Iran
US Beef Secures Expanded Market Access in Saudi Arabia
×