Arguably since the first agricultural revolution 10,000+ years ago, work has been tied a fixed location. That location-based work – first a farm, then a manufacturing plant, then an office – created opportunity. Opportunity attracted workers (or new citizens).
Therefore, we always formed cities, countries, and societies primarily through location-based opportunity. Go where the work is, as they say. For the first time in thousands of years, that trend is reversing. With the internet (and remote work layered on top), you now have the ability to bring your work (your livelihood, really) with you to any location.
This remote work revolution is starting to drive astounding second- and third-order consequences.
- If you can bring your work wherever you want, where should you live?
- If you no longer need to live near the office, what happens to our cities?
- If a company no longer has a physical headquarters, could it reside in a state or country with a more favorable environment?
In this article, we’re talking about the third-order effect of the remote work revolution: companies leaving states. In the United States, the biggest trend has been with companies leaving California.
Below, you’ll find all of the companies leaving California since 2020. Whenever a company announces its plans to leave the state, we’ll update the list.
Companies Leaving California: Every Announcement Since 2020
Here is the list of companies with over 100 employees:
"The tech company wants to find a buyer for 10 buildings in Mountain View that together total 707,000 square feet.
January 26, 2020
XO (XO Jets)
January 27, 2020
July 25, 2020
DZS (Dasan Zhone Solutions)
August 3, 2020
August 19, 2020
O. W. Lee
September 23, 2020
"San Antonio is filled with opportunity and creativity, it has a great talent pool, high quality of life, and is experiencing a cultural boom that we’d really like to be a part of,” he said. “The affordability of the city does make it attractive to business(es) and employees.”
But the “most critical reason” for the relocation is access to the wide pool of tech talent in the Twin Cities area, Schneider said."
October 29, 2020
Hewlett Packard Enterprise (HPE)
December 1, 2020
"The CEO and co-founder of a billion-dollar cybersecurity company has moved its headquarters out of San Francisco because it's "not the city it was.
Search Charles Schwab jobs
January 1, 2021
As part of the merger, the combined company’s headquarters would relocate from San Francisco to North Texas (Westlake)."
Lion Real Estate Group
January 7, 2021
January 22, 2021
Education Media Foundation (EMF)
March 24, 2021
Green Dot Corporation
May 18, 2021
June 15, 2021
June 29, 2021
Smart Wires, Inc.
July 27, 2021
July 29, 2021
August 11, 2021
August 17, 2021
August 17, 2021
August 24, 2021
August 26, 2021
First Foundation Bank
September 26, 2021
“To be clear we will be continuing to expand our activities in California,” Musk said. “Our intention is to increase output from Fremont and Giga Nevada by 50%. If you go to our Fremont factory it’s jammed.”
But, he added, “It’s tough for people to afford houses, and people have to come in from far away....There’s a limit to how big you can scale in the Bay Area.”
October 28, 2021
December 22, 2021
Marrone Bio Innovations
January 6, 2022
"Orange-based hydrogen fuel cell and transportation company Hyperion Companies said Tuesday it will move its global headquarters to Columbus, Ohio.
Hyperion said in a news release that it will create 680 new jobs over six years and invest about $300 million in a headquarters, research and development center and manufacturing operations in the city."
February 15, 2022
April 12, 2022
September 15, 2022
September 21, 2022
Virta Health Corp
October 3, 2022
October 6, 2022
Allspring Global Investments
October 20, 2022
Lucas Oil Products
November 1, 2022
Lucas Oil Products is also relocating its wholly owned MAVTV cable network from Corona, California to Indiana."
Here is the list of companies with under 100 employees:
- SignEasy: Texas, 2020
- Finical: Texas, 2020
- Arcturus Aerospace: Arkansas, 2020
- KVP International: Texas, 2020
- FileTrail: Texas, 2020
- AgencyKPI: Texas, 2020
- The Joe Rogan Experience: Texas, 2020
- ShiftPixy: Florida, 2020
- The Daily Wire: Tennessee, 2020
- Titans of CNC, Inc.:Texas, 2020
- Saleen Performance Parts: Texas, 2020
- Amazing Magnets: Texas, 2021
- Alpha Paw: Texas, 2021
- Moov Technologies: Arizona, 2021
- Huckleberry Insurance: New York, 2021
- ProfitPay Technologies: Nevada, 2021
- Nissei America, Inc.: Texas, 2021
- Markaaz: Texas, 2021
- Flannery Trim: Texas, 2021
- SmartAction: Texas, 2021
- Darvis: Tennesse, 2021
- AHV Communities: Texas, 2021
- Andamiro USA Corp.: Texas, 2021
- AFC Finishing Systems, Inc.: Idaho, 2021
- Precision Swiss Products: North Carolina, 2021
- Ocean Aero Inc.: Mississippi, 2021
- Cangshan Cutlery Company: Texas, 2021
- OrangeGrid: Texas, 2021
- Old Gringo Boots: Texas, 2021
- Gordon Ramsay North America: Texas, 2021
- The Rubin Report: Florida, 2021
- American Technologies Network, Corp. (ATN): Florida, 2022
- Noodoe: Texas, 2022
- Shelter Distilling: Colorado, 2022 (source)
- Sovereign Flavors: Texas, March 21, 2022 (source)
- HackEDU: Pennsylvania, April 18, 2022 (source)
- 828 Productions: New Mexico, August 19, 2022 (source)
- Cellipont Bioservices: Texas, August 30, 2022 (source)
- Runa Capital: Luxembourg, September 13, 2022 (source)
- Confer Inc: Texas, September 15, 2022 (source)
- Integrated Defense Products: September 19, 2022 (source)
- News stories linked to from within the table
- The California Book of Exoduses compiled by California Policy Center
- Hoover Institution at Stanford
Why are companies leaving California?
I’ve pulled out notable phrases that company leaders mentioned when explaining their decision to leave California. Here are some samples to give you an idea:
Finding a place that is “easier to hire talent“
In search of a “great talent pool” (in the new city and state)
Seeking a “more sustainable place to do business“
There is an “increasing intolerance and monoculture of Silicon Valley“
Seeking “a strong economic climate with low taxes, reasonable regulations and a high-caliber workforce”
Moving for “our business needs, opportunities for cost savings, and team members”
There were “some symmetries in the way that the Bay Area works that just didn’t really work well for us”
- “Arizona provided the ideal conditions of being business-friendly, offering a high quality of life at reasonable cost”
- Employees can be homeowners in Texas, “which in the Bay Area is virtually impossible”
- “In California, local rules could dictate how the company chooses board members, for instance”
How many businesses are leaving California?
The Hoover Institution at Stanford published an analysis in 2022. According to the analysis…
352 companies moved their headquarters to other states just in the period from January 1, 2018, through
December 31, 2021. In 2021, California business headquarters left the state at twice their rate in both 2020 and 2019, and at three times their rate in 2018.
Here are the company departures by year:
- 2021: 153
- 2020: 75
- 2019: 78
- 2018: 46
Where are they going? Primarily, Texas.
In my list current list, there are 53 companies leaving California between 2020 – 2022 with more than 100 employees. They’ve moved to 16 different states. Of those states, here are the biggest beneficiaries:
- Texas: 23 (43%)
- Arizona: 5 (9%)
- North Carolina: 4 (8%)
- Tennessee: 3 (6%)
- Florida: 3 (6%)
- Colorado: 3 (6%)
- Ohio: 2 (4%)
- 9 states: 1
- Multiple locations: 1
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