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

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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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