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Why some tech companies and billionaires are leaving California

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The California tech exodus: How big is it and what can be done to reverse...

While it may be an overstatement to say California is hemorrhaging people, some of the state's major companies and wealthiest residents are leaving for states like Texas, Arizona and Florida. In 2020, Oracle, Palantir and Hewlett-Packard Enterprise were among the companies that announced they're relocating their headquarters out of the Golden State. Wealthy individuals from the tech industry moving recently include Larry Ellison, Drew Houston, Joe Lonsdale and Elon Musk, currently the world's richest man.

California's population and job growth have both slowed to a trickle, with many citing concerns about high taxes, cost of living and heavy regulations. With the rise of remote work in 2020, over 135,000 more people left California than moved in -- the third largest net migration loss ever recorded for the state. Although some big names have committed to stay, one recent survey found that two of every three Bay Area workers would leave the area permanently if they could continue to work from home indefinitely. Dropbox, Twitter, and Facebook are among the Bay Area companies that have already offered permanent remote work to most employees.

Watch the video to learn the reasons behind the exodus, what's at stake if it continues to accelerate, and how experts say California should entice people to stay.