List of companies leaving California grows, citing high tax burden, cost of living

Not only are families fleeing California, so are the corporations and companies that provide jobs and innovation for the former Golden State.  Newsom is acting more like the CEO of the Texas Chamber of Commerce than the Governor of California.  He is silent on the numerous corporations, investors and families fleeing the former Golden State.  The Democrats are planning on tax increases, having Sacramento, not your city council, to be in charge of permits and zoning.  The State will run our lives—freedom might not even be found in the textbooks.

“The first to announce its exodus this year was Digital Realty Trust, a $36 billion company with over 1,500 employees. It announced last month it was relocating its global headquarters from San Francisco to Austin, Texas. The real estate investment trust will keep some of its presence in the Bay Area but is relocating the bulk of its operations to Texas. Its CEO, A. William Stein, said he’s doing so because of Texas’ “central location, affordable cost of living, highly educated workforce, and supportive business climate.”

Stitch Fix, a personal style service, began to disinvest in California and reinvest in lower-cost states last year. The $8.3 billion company formerly based in San Francisco laid off 1,400 stylists in California last June. By December, it began creating a new distribution center in Salt Lake City and this month announced it was shutting down its South San Francisco distribution warehouse altogether.

Now you know why housing and rent prices are plummeting in San Fran—and leased space is cheap compared to a year ago—but no one is leasing in this dying town.

List of companies leaving California grows, citing high tax burden, cost of living

Bethany Blankley | The Center Square, 2/22/21  

(The Center Square) – Leaders of corporations have been leaving California for years, relocating their headquarters, or their entire operations, out of state, citing high cost of living and one of the highest tax burdens in the country as their reason, the California Policy Center notes in its updated California Book of Exoduses.

While large and small companies are relocating primarily to Texas, other destinations include Arizona, Tennessee, Florida and a few other states.

The first to announce its exodus this year was Digital Realty Trust, a $36 billion company with over 1,500 employees. It announced last month it was relocating its global headquarters from San Francisco to Austin, Texas. The real estate investment trust will keep some of its presence in the Bay Area but is relocating the bulk of its operations to Texas. Its CEO, A. William Stein, said he’s doing so because of Texas’ “central location, affordable cost of living, highly educated workforce, and supportive business climate.”

Stitch Fix, a personal style service, began to disinvest in California and reinvest in lower-cost states last year. The $8.3 billion company formerly based in San Francisco laid off 1,400 stylists in California last June. By December, it began creating a new distribution center in Salt Lake City and this month announced it was shutting down its South San Francisco distribution warehouse altogether.

The California Policy Center has catalogued at least 50 large corporations that have left California since 2014, with the vast majority leaving in 2019 and 2020.

Of the six corporations that announced their California exodus so far this year, four relocated to Texas. First Foundation, a California bank, moved its holding company to Dallas; Digital Realty Trust moved its data center to Austin, following Oracle, Hewlett Packard Enterprise and Tesla, which all announced their exodus last year.

Amazing Magnets, a magnet manufacturer, already broke ground for its new headquarters in Round Rock, a suburb of Austin. ZP Better Together, a company providing tech solutions for the deaf, also relocated its headquarters to Austin.

High profile entrepreneurs also left California last year. Billionaire Elon Musk, radio host Joe Rogan and DropBox CEO Drew Houston all moved to Texas.

Notable California venture capitalists David Blumberg, Keith Rabois and Shutterstock’s billionaire founder Jonathan Oringer left Silicon Valley for Miami, arguing San Francisco is poorly managed. Tech billionaire Larry Elison left California for Hawaii. Conservative talk show host Ben Shapiro left Lost Angeles for Nashville.

In addition to the Silicon Valley tech companies that already left California for Texas last year, Charles Schwab relocated its corporate headquarters from San Francisco to Dallas. Apple also announced the building of its new campus in Austin.

Survey company QuestionPro also relocated to Austin last year, as did SignEasy to Dallas, Finical, Inc. to Dallas, Dasan Zhone Solutions to Plano, and the $23 billion CBRE Group to Dallas.

California saw a cumulative decrease in adjusted gross income between 2010 and 2018 of $24.6 billion, according to an new analysis of IRS data by the independent research website Wirepoints.

It also reported a population loss for the first time in its recorded history according to Census Bureau data.

Increasing taxes, restrictive policies on businesses and ongoing lockdowns have led individuals and Silicon Valley companies to exit California over the last two years, but in 2020 for the first time California lost 70,000 residents on net.

Until 2020, California had gained population in every year since 1900.

About Stephen Frank

Stephen Frank is the publisher and editor of California Political News and Views. He speaks all over California and appears as a guest on several radio shows each week. He has also served as a guest host on radio talk shows. He is a fulltime political consultant.

Comments

  1. RECALL NEWSOM says

    We fled CommiCalifornia after the Nov 2020 election. Sold properties, including rentals that became primary residences (resulting in reduced rental inventory; another by product of the exodus), sold a primary residence and moved one company and looking to move another one this year to Idaho.

    The city of Santa Rosa and Sonoma county is a wasteland and the city council and board of supervisors are caustic to taxpayers and businesses.

    We are very concerned that our state, and local city council election was rigged, resulting in a city council candidate losing his race by exactly 200 after the city delayed the results by 17 days. He was the preferred candidate and he lost. We want a forensic audit all the way down to the city and county level in CA.

  2. Recall Pretty Boy Newsom at RecallGavin2020.com
    That will be a start to help Kaliforniastan begin a recovery.

  3. How many major employers will leave California before the Sacramento Spenders are forced to wake up?
    A trillion dollars in unfunded mandates will assure that thousands of retired government workers soon will not be able to afford to live here. We are in a state that made promises based on a union dream of the inexhaustible supply of high end private sector tax money. The exhaust is happening because big money and the middle class is mobile. Sooner or later good weather takes second place.
    Wage gap is a valid indicator and California is king in that department. With the siren song of socialism, the national sharp turn to the left is upon us. The mid terms should be very interesting. If we last that long.

    • Vince DeVargas says

      A related question: will CA EVER wake up? The voting population has been so indoctrinated to the Dem Party that they just keep re-electing the same kind of people, those who can get the funding from the unions and the mega donners who are unaffected by the cost of living that the little people pay to live there.

  4. Leaving California is just basic common sense. Not to sure moving to Texas is the answer as those leaving California for Texas have taken their reasoning skills with them and are polluting the once Great State of Texas. It is showing in Austin as well as the Houston/Fort Worth area.

  5. A major after market very high tech. automotive company is in the slow process of leaving the state.

    Ask them upfront and they deny it. But they have joined corporations with another company and are consolidating plants.

    The impacts of Socialist Economics is setting in and the taste is bitter. They are moving to other areas of the nation that have reduced costs, good technical skills.

    The Democrats will tell you not to worry other companies will fill the void. Want to bet?

  6. Download the Recall Gavin Petition at https://recallgavin2020.com/petition/

  7. Martin Espinosa says

    Ah, collective bargaining,unions making deals with the people they put in office. How is that working out for the voter?

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