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By | Gavin Clarke 17th April 2007 20:01

Borland bails out of California, moves HQ to Austin, TX

Texas hold 'em

Borland Software is moving its management and operations team out of Silicon Valley and into Austin, Texas.

The company, which re-located to its current Cupertino HQ from across the Valley just a few years back, is shifting up 200 of its 1,168 staff to Austin, Texas, by the end of this year. Those waving adios to CA are back-office staff along with its chief executive, chief financial officer and senior vice president of human resources.

The move expands Borland's existing 35-person strong Austin R&D facility.

A spokesperson told The Register that Borland's CodeGear tools subsidiary, comprising some 300 people, would remain at Borland's Scotts Valley location.

In a statement chief executive Tod Nielsen said Austin provided a "cost-effective environment" and local skills to "execute on our plan to profitability." He had committed Borland, which lost $51m on $304m revenue in 2006, to profitability during the year's closing quarter.

An upbeat Nielsen said: "In Silicon Valley, we are a small fish in a big pond. In Austin we can be a leading software brand that can attract great talent."

While Borland has suffered, er, execution "issues", the company joins many other California-based companies fleeing the state, shortage of skilled labor and incentives from rival states. Twenty-five companies have moved to Austin during the last seven years.®

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