Twitter CEO Jack Dorsey says 'concentration in San Francisco is not serving us any longer'

Twitter CEO Jack Dorsey said that the company's "concentration in San Francisco is not serving us any longer." Twitter CEO Jack Dorsey said that the company's "concentration in San Francisco is not serving us any longer." Photo: Jose Luis Magana / Associated Press 2018 Photo: Jose Luis Magana / Associated Press 2018 Image 1 of / 42 Caption Close Twitter CEO Jack Dorsey says 'concentration in San Francisco is not serving us any longer' 1 / 42 Back to Gallery

In an earnings call last week, Twitter CEO Jack Dorsey said that the company's "concentration in San Francisco is not serving us any longer," according to Business Insider. Therefore, Twitter plans to begin focusing on hiring remote workers outside of the Bay Area.

This doesn't mean San Francisco will stop being Twitter's headquarters, or that anyone is losing their jobs at this point in time, according to the company.

"San Francisco will be where the majority of our employees will be based for the foreseeable future," a Twitter spokesperson told Business Insider.

This news comes eight months after Twitter's tax break expired, which was originally created in 2011 to incentivize job opportunities in the city, particularly in the mid-Market district.

However, the tax break didn't benefit the city as much as lawmakers hoped, with the retail vacancy rate on Mid-Market still being double the citywide average — it's actually gone up since 2013.

RELATED: I tried to live like Jack Dorsey for a day. I immediately regretted it.

According to Business Insider, Twitter's decision to focus more on a remote workforce comes from San Francisco's expensive real estate market coupled with a bloated workforce. Plus, a new city measure proposes limiting the yearly amount of new office development.

Meanwhile, the software industry as a whole is trending towards remote work.

Madeline Wells is an SFGATE associate digital reporter. Email: madeline.wells@sfgate.com | Twitter: @madwells22