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Major Companies Abandon California: 14 Notable Departures Revealed

Major Companies Abandon California: 14 Notable Departures Revealed
Editorial
  • PublishedOctober 18, 2025

URGENT UPDATE: A wave of corporate relocations from California has intensified, with 14 major companies announcing their departures over recent years. Leaders like Elon Musk and executives from Chevron have cited unfavorable business conditions as primary reasons for leaving the Golden State.

Latest reports reveal a growing trend, with high-profile firms opting for states perceived as more business-friendly. This shift is significant for California’s economy, which has long been a hub for innovation and technology. According to a 2025 report from the Public Policy Institute of California, only 3% of firms have relocated, but the impact is profound, particularly among larger companies.

Among the notable departures, McKesson Corp., one of the largest pharmaceutical companies in the U.S., moved its headquarters to Las Colinas, Texas, in 2019. CEO John H. Hammergren stated the move was aimed at increasing efficiency and lowering costs.

In 2024, oil giant Chevron shifted its base to Houston, citing California’s regulatory environment as a major obstacle. Ross Allen, a spokesperson for the company, emphasized that policies in California have created hardships for businesses and consumers alike.

The departure of Tesla to Austin, Texas, in 2021 was fueled by Musk’s frustrations with local governance and pandemic restrictions. Musk expressed that there was a limit to scaling operations in the Bay Area, which has also seen a significant outflow of residents.

Moreover, tech giant Oracle announced it would leave California for Austin in 2020, only to later reveal a move to Tennessee, further emphasizing the trend of companies abandoning California for states offering a more favorable business climate.

The trend is mirrored by individuals, as nearly 700,000 people left California between 2022 and 2023, according to U.S. Census data. Factors such as lifestyle and affordability are driving this exodus, highlighting a growing dissatisfaction with California’s cost of living.

Other companies making similar moves include Palantir, which relocated to Denver in 2020, and SpaceX, which plans to shift its headquarters to Starbase, Texas, in 2024. CEO Elon Musk cited new laws in California as a catalyst for this decision, stating it was the “final straw.”

Additionally, Kenvue recently announced the closure of Neutrogena’s headquarters in Los Angeles, affecting about 100 employees, with operations moving to Summit, New Jersey.

The lifestyle brand Playboy also revealed plans to move to Miami, citing challenges of doing business in California as a key reason for the transition.

In a statement to Business Insider, Charles Schwab articulated similar sentiments, pointing to California’s high operational costs as a driving factor behind its relocation to Westlake, Texas, in 2019.

As corporate relocations continue, the implications for California’s economy remain uncertain. The shifting landscape raises questions about the future of the state’s business environment and its ability to retain companies and talent.

WHAT’S NEXT: As these companies transition to their new locations, the reactions from California officials and the broader business community will be crucial to watch. The ongoing trend of corporate migration could redefine the economic landscape in the coming years, prompting discussions about policy reforms aimed at retaining businesses.

Editorial
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Editorial

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