We opened our Phoenix office in 2006 and hoped that it would develop to support many of our internal engineering projects, the systems that make Google, well, Google. But we've found that despite everyone's best efforts, the projects our engineers have been working on in Arizona have been, and remain, highly fragmented. So after a lot of soul searching we have decided to incorporate work on these projects into teams elsewhere at Google. We will therefore be closing our Arizona office on November 21, 2008.
We'd like to thank everyone involved in this project for their energy and enthusiasm: our engineers; the engineering community in Arizona; the city of Tempe; and the greater Phoenix area. We are now working with the Phoenix Googlers to transition them to other locations, or to identify other opportunities for them at Google.
Link - from The Official Google Blog
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