Two Monday afternoon update bulletins demonstrated just how far the economy and change are reaching our backyard here in Pleasanton.
A story in the San Francisco Business Times told how ADP, a mainstay of the Hacienda Business Park for decades, is closing its office there. The company’s 63,000 square foot building is located in the Britannia Business Center on Hopyard Road and operations have been carried out there since 1997. The report states that changing labor requirements have led to the decision to close the building and that the workers would be transferred to other sites. in the East Bay.
The second story was more surprising. Fast-growing 10x Genomics, headquartered on Stoneridge Mall Road with a new three-building complex under construction nearby, said it would lay off 33 employees. In the 10 years since its founding in Pleasanton, the company has released many products designed to help researchers do their jobs more efficiently. Its customers include more than 90% of the top research institutes and private life science companies.
It has been almost three years since 10x completed its IPO which raised 4390 million. Revenue grew from $3.32 million in 2015 to $490.5 million in 2021. The company’s first-quarter revenue declined slightly, largely due to the lockdown in China, which accounts for about 15% Sales. More importantly, the company forecast growth of around 2% this year, a rate well below its previous surging revenues.
CEO Serge Saxonov described the job cuts as making the company more resilient and positioning it for future growth. The company expects its new 381,000 square foot facility to open in the first quarter of next year.
Both announcements show that the Tri-Valley, despite its diverse and robust economy, is not immune to broader trends. How demand for office space will evolve in the age of remote working or hybrid working hours remains an open question. Major tech employers, such as Facebook and Google, have tried to bring employees back to the office and have faced significant pushback from people happy to skip the commute and work from home. The Business Times cited a Newmark report that put the office vacancy rate at 19% in the Tri-Valley.
Given the sweet spot 10x seemed to be in and its strong customer list, it’s surprising to see revenue slowing down so significantly. The company has still not achieved profitability, hence the minor staff reduction to adjust expenses.
The East Bay Times reported that Snowflake had nearly quadrupled his space in the Dublin office building he occupies, which faces Interstate 580 at Tassajara Road. A spokesperson reportedly said it could accommodate an additional 500 employees. The technology company helps companies maximize their collaboration and use data from the cloud.
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