California keeps losing companies and residents, and this piece walks through the latest corporate departure, why executives say they’re leaving, and the broader political and economic fallout that’s pushed businesses toward states like Texas.

‘Doing Business in California Sucks’ — Yet Another Company Flees Gavin Newsom’s Golden State

Digital Brands Group, an apparel and e-commerce company long based in Vernon, announced a move to Round Rock, Texas, joining a steady stream of firms exiting California for lower taxes and simpler regulations. Executives cite rising costs, long commutes, and the legal and regulatory burden as reasons driving their decision to relocate operations and headquarters. That shift is part of a larger trend that has sent billions in income and corporate footprint out of the state.

Local leaders in the destinations getting those businesses are quick to tout the wins, and Texas continues to be the primary beneficiary of this migration. Other states like Florida, Colorado, and Montana have also seen inflows of companies and wealthy residents seeking friendlier economic climates. The result is a rearrangement of jobs, tax revenue, and regional economic momentum away from California.

One clear, unvarnished quote sums up the frustration felt by many CEOs: “Doing business in the state of California sucks,” said Digital Brands Group CEO Hil Davis. That blunt assessment captures a pattern reported by other departing executives, who point to rising expenses and a regulatory environment that makes scaling and defending a business harder. Those complaints align with the tangible outcomes: companies moving headquarters, leasing new space elsewhere, and projecting lower operating costs after the move.

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Financial flows out of California are already measurable and significant, with Los Angeles County alone seeing large sums leave as taxpayers and filers change residency. The consequences include fewer high-paying jobs inside the state, lower tax receipts, and a diminished pool of tech and retail investments. For communities that relied on those employers, the losses translate into long-term damage to local economies and public services.

Executives who stay often face higher operating bills, legal exposure, and talent retention challenges because of long commutes and high housing costs. “You start to add all those things up,” one CEO said. “It doesn’t work. It doesn’t make sense. It’s too hard.” Those are not abstract complaints; they are concrete reasons for corporate leaders to relocate significant parts of their business infrastructure.

The exodus is not limited to small or medium firms; household-name companies have shifted headquarters or major operations in recent years. Industry giants moving assets and people have amplified headlines and fed political debate over whether state policy choices are chasing commerce away. The departures also feed a narrative used by critics who argue that California’s policy mix is unsustainable if it hopes to retain its economic primacy.

Adding to the uncertainty is a ballot initiative that would impose a one-time five percent wealth assessment on residents with net worth above $1 billion, a proposal that has already influenced wealthy individuals to reconsider residency. That kind of policy can accelerate capital flight and talent relocation, reinforcing the exodus trend if enacted. Business leaders see such measures as signals about the long-term direction of state governance and fiscal priorities.

Public reaction in California is mixed, but the factual record of relocations and taxable income shifting out of state is plain. Communities that lose employers must reckon with gaps in employment and tax bases, while recipient states gain growth, jobs, and investment. The political implications extend beyond state lines as leaders position themselves for national prominence and voters weigh the consequences.

The debate over causes and cures is fierce: policymakers who favor more regulation argue for social and environmental goals, while opponents say those policies undercut competitiveness and drive people away. The practical result, though, is that firms and wealthy residents vote with their feet when the cost-benefit calculation no longer favors staying. That movement reshapes regional dynamics in measurable ways.

The story of Digital Brands Group is one more data point in a long list of departures that have changed corporate America’s map. Industry observers will keep watching whether California’s leaders adjust course to retain businesses or double down on policies that critics say accelerate the exodus. Either way, the economic shifts already underway are real and will influence where companies choose to locate in the years to come.

California companies continue to head for the exits.

Digital Brand Group CEO Hil Davis is relocating the apparel and e-commerce company’s headquarters from California to Round Rock, Texas, citing the state’s high costs, employee commutes and increasingly difficult business environment.

“Doing business in the state of California sucks,” Davis told Fox News.

Los Angeles County also led the nation in taxpayer losses, with nearly $1.9 billion in income leaving the county as thousands of filers moved to other states.

We can now add Valero to the growing list of major companies fleeing California, taking well over $1.6 trillion of revenue with them. Great job Newsom!

• AECOM

• Align Technology, Inc.

• Amazing Magnets, LLC

• Amgen Inc.

• Anduril

• Anheuser-Busch

• Bed Bath & Beyond

• Blaze Pizza

• CBRE Group, Inc.

• Charles Schwab Corp.

• Chevron

• Digital Realty Trust, Inc.

• Dropbox

• FICO

• First Foundation Inc.

• Forever 21

• Hewlett Packard Enterprise (HPE)

• HomeLight

• In-N-Out Burger

• Lucas Oil

• McAfee

• McKesson Corporation

• Neutrogena (Johnson & Johnson)

• Oracle

• Pabst Brewing Company

• Palantir Technologies

• Realtor dot com

• Ruiz Foods

• Sendoso

• Skillz

• Snowflake

• SpaceX

• Symantec

• Tesla

• Unical Aviation, Inc.

• Valero

• Viavi Solutions Inc.

• X (formerly Twitter)

• ZP Better Together Unical Aviation

Editor’s Note: Gavin Newsom wants to turn America into one big version of California – a failed, overtaxed, dystopian nightmare.