It’s no secret that the business world is changing, and California, once the undisputed king of corporate headquarters, is feeling the shift. A growing number of companies have decided to pull up stakes and move their operations elsewhere. While the Golden State still boasts a massive economy and remains a hotbed for new ideas, executives are increasingly pointing to the same culprits: high taxes, a maze of regulations, and steep costs that make long-term stability feel like a gamble.
Texas seems to be the new darling, but states like Colorado, Florida, and Tennessee are also rolling out the welcome mat. These moves are strategic decisions driven by a search for predictable, affordable places to do business. From tech titans to trusted household names, here are 25 companies that have waved goodbye to California and the reasons they decided it was time for a change of scenery.
McKesson
McKesson, a heavyweight in pharmaceutical distribution, moved its headquarters from the pricey hills of San Francisco to Irving, Texas, back in 2019. This wasn't a knee-jerk reaction. Executives explained it was a deliberate, years-long shift to the Dallas-Fort Worth area, which had already become a major operational center for the Fortune 10 company. Placing their headquarters in the middle of the country just made sense for getting products to customers faster.
The move was all about calculated, long-term planning. Texas offered a more stable tax situation, which is crucial when you’re managing a high-volume, low-margin business. Plus, the lower cost of living was a real win for employees, allowing McKesson to attract and keep top talent without battling the Bay Area’s brutal housing market.
Chevron
After more than a century in California, oil giant Chevron announced in 2024 it was moving its headquarters from San Ramon to Houston. The company already had a huge presence in Texas, so making Houston the official HQ was a logical step to bring leadership closer to the heart of the U.S. energy industry. This allows for tighter collaboration with partners, suppliers, and a deep pool of industry-specific talent.
Company leaders pointed a finger directly at California’s tough regulatory environment. The constant uncertainty and rising costs made it hard to plan for the future. By moving to Texas, Chevron planted its flag in a state known for its business-friendly approach, securing its ability to compete on a global scale.
Tesla
In a move that made headlines everywhere, Tesla officially shifted its corporate headquarters from Palo Alto to Austin, Texas, in 2021. The relocation followed very public clashes between CEO Elon Musk and California officials over manufacturing rules and pandemic shutdowns. The timing was perfect, as the massive Gigafactory Texas—central to building the Model Y and Cybertruck—was just getting up and running.
Musk didn't mince words, stating that the Bay Area had limits on how much a company could grow. Sky-high real estate costs and long commutes for workers were major roadblocks to expansion. Texas, on the other hand, offered wide-open spaces, a more relaxed regulatory scene, and no state income tax—a perfect trifecta for Tesla’s world-conquering ambitions.
Oracle
Database and cloud pioneer Oracle moved its headquarters from Redwood City to Austin in 2020. The company spun the decision as a nod to a more modern work culture, giving its employees more freedom to choose where they live. Though Oracle still employs thousands in California, the move signaled that Silicon Valley was no longer the center of its universe.
Let's be real—money was a big factor. Founder Larry Ellison had been a vocal critic of California's high taxes and business costs for years. By setting up shop in Austin, Oracle plugged into a booming tech scene with much lower operating costs, freeing up cash to pour into its cloud services instead of just keeping the lights on.
Hewlett Packard Enterprise (HPE)
Hewlett Packard Enterprise packed up its San Jose headquarters and moved to Houston in 2020. The decision came five years after its split from HP Inc. and represented a fresh start. Since Houston was already HPE’s biggest employee hub in the country, the move simply aligned the company’s leadership with where its people already were.
The main drivers were talent and cost. HPE wanted to recruit from a more diverse pool of workers and escape the astronomical real estate prices of Silicon Valley. Houston provided a business-friendly setting and a central location to serve clients across the globe, helping HPE complete its transformation from a classic hardware company to a modern services provider.
Charles Schwab
In 2019, Charles Schwab relocated its headquarters from San Francisco to Westlake, Texas. The move came right after its acquisition of TD Ameritrade and cemented its growing presence in the Dallas-Fort Worth area. The enormous new campus in Westlake was built to bring thousands of employees and the company's leadership together in a region already known as a financial powerhouse.
Founder Charles Schwab was refreshingly honest about the reasons, blaming California’s high taxes and cost of living. Texas offered a better deal for both the company and its employees, who could now build their own financial futures more easily. The move was a clear statement of Schwab’s commitment to providing value and efficiency, which has always been its bread and butter.
CBRE
CBRE, the biggest commercial real estate firm on the planet, shifted its global headquarters from Los Angeles to Dallas in 2020. The company said the move was mostly a formality, since many of its top executives were already working out of Dallas. Making it official just aligned the company’s structure with its day-to-day reality.
Cost and convenience were the name of the game. CBRE’s leaders knew firsthand that running a headquarters in California came with a hefty price tag. Dallas offered a central time zone perfect for managing a global business, a world-class airport, and a pro-business attitude that made expansion easy.
Palantir Technologies
Palantir Technologies made a bold move in 2020, relocating its headquarters from Palo Alto to Denver, Colorado. CEO Alex Karp didn't hold back, slamming Silicon Valley culture as a bubble disconnected from the rest of the country. For a company that works closely with government and defense agencies, finding a location that shared its values was a top priority.
Denver was a breath of fresh air. It offered a high quality of life and a growing tech scene without the saturation of the Bay Area. The move helped Palantir recruit employees who valued an outdoor lifestyle and a more affordable cost of living. By leaving California, Palantir set itself apart from other tech companies, proving its commitment to national priorities.
SpaceX
In 2024, SpaceX announced it would move its headquarters from Hawthorne, California, to its sprawling Starbase facility in Texas. The decision came after years of expanding launch operations in South Texas. CEO Elon Musk pointed to a specific piece of California legislation as the “final straw,” voicing his deep frustration with the state’s meddling.
The move was a masterstroke of operational efficiency. It put SpaceX's leadership right where the action is—at the launch site for its most important future projects. Texas offers a regulatory runway that allows for the kind of fast-paced testing and development needed to get to Mars. Decision-making is now streamlined, with executives working side-by-side with the teams building the rockets.
Neutrogena (Kenvue)
Neutrogena, now under the Kenvue umbrella, shifted a large part of its operations from Los Angeles to New Jersey. After Kenvue spun off from Johnson & Johnson, the new company wanted to bring its corporate teams together. Moving closer to Kenvue's East Coast base made management more efficient and integrated Neutrogena with its parent company’s shared services.
Though Neutrogena is still associated with the California sun, this was a practical business decision. Consolidating office space reduces overhead and makes the supply chain run smoother. This restructuring allows the company to invest in what matters—developing new products and marketing them—instead of paying for separate offices across the country.
Playboy
Playboy traded the West Coast for Miami, moving its headquarters from Los Angeles to Florida in a major rebranding effort. As the company evolved from a magazine to a full-fledged lifestyle brand, it needed a home that reflected its new, modern vibe. Miami’s booming creative scene and cultural energy made it the perfect fit.
The move was also a financial play. Florida’s favorable tax laws offered a clear advantage over California. The relocation allowed Playboy to tap into a younger, more diverse talent pool while cutting corporate costs, all part of a larger strategy to breathe new life into an iconic brand.
Realtor.com
Realtor.com followed the tech trail to Texas, moving its headquarters from Santa Clara to Austin. The shift mirrored a broader trend of digital companies flocking to the "Silicon Hills" of Central Texas. By setting up shop in Austin, the company planted itself in one of the country's hottest housing markets, giving it a front-row seat to real estate trends.
Cost savings were a huge win, not just for the company but for its employees. Austin’s lower cost of living is a major perk in the battle for tech talent. The move allowed Realtor.com to plow more money into growth and innovation while operating in a state that actively encourages business.
AECOM
AECOM, a top-tier infrastructure consulting firm, moved its global headquarters from Los Angeles to Dallas in 2021. With massive engineering projects spanning the globe, Dallas offered a central hub with great connectivity. The move also put leadership closer to booming markets in the energy and infrastructure sectors, which are big business in the Gulf Coast region.
This was a financially driven decision. AECOM took advantage of Texas's lower corporate taxes and real estate costs to reduce overhead and become more competitive. The Dallas headquarters now serves as the nerve center for a global team focused on delivering top-notch engineering and value to its clients.
FICO
FICO, the company behind the famous credit score, made a surprising move by relocating its headquarters from San Jose to Bozeman, Montana. The decision was a testament to the rise of remote work. Leadership chose Montana to prioritize quality of life for its employees, swapping the high-stress, high-cost Bay Area for the mountains and fresh air.
The move also made good financial sense by cutting operating costs. FICO's executives realized they didn't need a Silicon Valley address to stay on the cutting edge of technology. The shift to Bozeman sent a clear message about the company's commitment to sustainability and work-life balance, attracting talent looking for something different.
Informativ
Informativ, a tech company focused on credit and compliance for the auto industry, moved its headquarters to Frisco, Texas. The company was looking for a business environment that was predictable and supportive of financial services. Texas has become a go-to spot for fintech companies, offering a strong network of partners and talent.
Moving to Texas allowed Informativ to grow more efficiently. By cutting the high costs of operating in California, the company freed up capital to invest in its technology and customer service. The Frisco location provides modern infrastructure and easy accessibility, supporting the company's growth in a niche market.
Wiley X
Wiley X, a maker of high-performance protective eyewear for military and law enforcement, moved its entire operation from Livermore, California, to a brand-new facility in Frisco, Texas. The move consolidated manufacturing, distribution, and corporate offices under one roof, streamlining the entire supply chain and production process.
Executives pointed to California's tough regulatory landscape for manufacturers as a major reason for the exit. Texas, in contrast, offered a pro-manufacturing climate with lower utility and labor costs. This allowed Wiley X to continue making its top-quality gear in the USA while keeping prices competitive and deliveries on time.
Ruiz Foods
Ruiz Foods, the largest producer of frozen Mexican food in the U.S., relocated its headquarters from Dinuba, California, to Frisco, Texas. Although the company kept its manufacturing plants in California, moving the corporate office allowed leadership to operate from a more central logistics hub. For a company shipping frozen goods nationwide, Texas’s transportation network is second to none.
The availability of skilled workers and lower business costs were also key. The Dallas-Fort Worth area is home to a deep pool of corporate talent with experience in the food and beverage industry. By moving its leadership to Texas, Ruiz Foods is better positioned to manage its national growth and compete in the crowded frozen food aisle.
Quickfee Solutions
Quickfee Solutions, a fintech company that serves professional firms, moved its North American headquarters to Plano, Texas. The company needed a location that could support rapid growth. Texas provided access to a skilled workforce in both finance and technology, without the sticker shock of coastal tech hubs.
The goal was simple: operate more efficiently. Executives made it clear that the money saved on taxes and real estate would be plowed back into developing the platform. Plano's reputation as a major corporate center also gave Quickfee a professional backdrop to host clients and partners, boosting its credibility.
Inbenta
Inbenta, an AI-powered customer service platform, left the Bay Area and moved its headquarters to Allen, Texas. The move highlighted a growing trend of AI companies looking for a home outside of Silicon Valley. Leadership wanted a place that offered both high-tech talent and an affordable lifestyle for its employees.
This was a strategic play for long-term financial health. The high cost of doing business in California can drain a company's resources. Texas, however, offers a more sustainable path to growth. Inbenta used the move to build a more resilient business, focusing its cash on creating a great product instead of paying for a fancy address.
Frontier Communications
Frontier Communications moved its headquarters to Dallas, Texas, as part of a major company overhaul. The move was a strategic centralization effort after acquiring Verizon's assets in California, Texas, and Florida. Placing the headquarters in Dallas put the company’s leadership right in the middle of its largest and most important fiber-optic markets.
The relocation was designed to streamline the telecom giant’s operations and shed legacy costs. Texas offers a central base for managing a national network and a regulatory environment that encourages investment in infrastructure. This move positions Frontier for a future built on high-speed broadband.
Thermonix
Thermonix relocated its operations to Dallas to take advantage of the region's strong industrial base. Leaving California meant escaping strict manufacturing regulations that often slow down production. The Dallas area provides a robust supply chain and access to the skilled labor needed for technical manufacturing.
Cost was a huge factor. High energy prices and labor costs in California were squeezing margins. By moving to Texas, Thermonix was able to lower its costs, making it more competitive on price and delivery speed and ensuring its long-term survival in a tough market.
Landsea Homes
Landsea Homes moved its corporate headquarters to Dallas, reflecting a major shift in the U.S. housing market. While the homebuilder is still active in California, putting its headquarters in Texas aligns its leadership with one of the fastest-growing regions for new home construction in the country.
Executives cited Texas’s pro-business climate and strong demand as key reasons for the move. The state offers a regulatory environment that encourages development, a stark contrast to the long and costly permitting battles common in California. The move allows Landsea to more effectively manage its national portfolio from a state that champions growth.
Kelly-Moore Paints
Kelly-Moore Paints moved its headquarters from San Carlos, California, to Irving, Texas. The decision was the logical next step after years of expanding its manufacturing in the Lone Star State. By putting its leadership team close to its main production facilities, the company improved communication and could react more quickly to market changes.
The move also highlighted how difficult it has become to run an industrial business in the Bay Area. Soaring real estate values made its San Carlos location impractical for a paint manufacturer. Texas provided a cost-effective solution that allowed the company to keep making quality products while protecting its bottom line.
McAfee
McAfee, a titan in the cybersecurity world, set up a major regional headquarters in Frisco, Texas, shifting a significant portion of its leadership away from California. The move was part of the company's evolution as it navigated going public and then private again. Texas offered a stable, central location from which to manage a global security empire.
The relocation gave McAfee room to grow. Executives pointed to the Dallas area's rich talent pool of cybersecurity experts as a major draw. Moving away from a purely Silicon Valley-focused model allowed McAfee to diversify its workforce and operate more efficiently, ensuring that its resources are aimed at fighting digital threats.
8VC
Venture capital firm 8VC led an exodus of investors from the Bay Area, moving its headquarters from San Francisco to Austin. Founding partner Joe Lonsdale didn't pull any punches, citing the declining quality of life and poor governance in San Francisco as his main reasons for leaving. The move was a clear signal that the people who fund innovation are no longer tied to one city.
This shift points to a broader change in the startup world. 8VC and other firms discovered that Austin had a vibrant, can-do culture that attracted ambitious founders. The lower cost of living and lack of state income tax in Texas were also big draws for the partners and their staff, allowing them to build a new community of innovators far from the California bubble.
