Polycom is Moving its Headquarters to Silicon Valley

Polycom will move its headquarters out of Pleasanton and shift the company's Bay Area operations to Silicon Valley, the fast-growing tech dynamo said Tuesday.

About 150 jobs will leave Pleasanton as a result of the move, which is part of an effort to consolidate operations in one location.

"Polycom is growing and is planning on moving the headquarters to the San Jose area," said Caroline Japic, a spokeswoman for the video conferencing giant.

The company plans to exit Pleasanton within 18 months.

"We will be consolidating our Bay Area offices in Pleasanton, San Jose and Santa Clara into a new Silicon Valley location in the second quarter of 2012 to coincide with the expiration of our Pleasanton lease," Japic said.

A decision hasn't been made yet about which Silicon Valley city will land the tech firm. In 2010, Polycom generated $1.22 billion in sales and earned $68.4 million.

"We would hate to see Polycom leave Pleasanton," said Pamela Ott, Pleasanton's city economic development director. "They have been a great business partner in our community."

The company employs 370 people in the Bay Area, including 150 in Pleasanton.

"We will have a global headquarters located in Silicon Valley that is closer to important partners, customers and employees," Japic said. Plus, a single site, she said, "is more cost efficient than running three separate locations."

All 370 of the jobs would be located in the single Silicon Valley location the company eventually chooses.
"Polycom would be a fantastic company for either San Jose or Santa Clara," said Nancy Klein, a deputy director in the San Jose city economic development department. "We would be ecstatic if Polycom moves to San Jose."

 The company, which was founded in Milpitas, would be a good fit for Silicon Valley, she said.

"It is appropriate that they should be headquartered in Silicon Valley, given their exciting and growing business," she said.

San Jose officials previously had reached out to the company in the past because it has a significant operation in the city's North First Street corridor.

Polycom said it has begun to scout for a new location.

"We are making progress, but nothing is final yet," Japic said.

Despite the departure of Polycom, Pleasanton has had a hot hand lately in attracting companies, including some tech firms.

Patelco Credit Union has just moved its headquarters there from San Francisco. Callidus Software moved out of San Jose into Pleasanton last year. In addition, Oakland-based Clorox will be moving a significant part of its operations to Pleasanton by the end of this year, bringing hundreds of workers to the city.

Pleasanton officials were philosophical about the looming loss of a company that has become a major tech player.

"We understand that businesses decide to relocate, stay, expand for a variety of reasons," Ott said. "We respect the reasons that Polycom has for consolidating to a different location."