Musk said X had "no choice" but to close its Market Street office in downtown San Francisco. He said, "It is impossible to operate in San Francisco if you're processing payments," adding, "That's why Stripe, Block (CashApp) & others had to move."

NYTimes' report cited an email from X's chief executive, Linda Yaccarino, to employees on Monday explaining that workers from the downtown office will be shifted to existing offices in San Jose. X will also open an engineering-focused office in Palo Alto for X employees that will be shared with Musk's artificial intelligence company, 'xAI.'

"This is an important decision that impacts many of you, but it is the right one for our company in the long term," Yaccarino wrote to employees.