High-Cost Golden State Loses More Jobs as Employers Move or Close
Several California employers recently announced plans to close in-state operations, move jobs to other areas, or expand outside California:
- After comparing the costs of doing business, Lending Club is moving 350 jobs from San Francisco to Utah. “Growing exclusively in San Francisco simply doesn’t make financial sense,” Chief Executive Officer Scott Sanborn said. (Source: San Francisco Business Times, May 1.)
- San Francisco-based KeepTruckin Inc., formerly headquartered in San Francisco, is adding new jobs and investments in Nashville. “KeepTruckin is one of several West Coast tech firms that have looked to Nashville as a lower-cost option to expand operations in recent years,” the San Francisco Business Times reported. The company, which produces software intended to improve the safety and efficiency of long-haul truckers, announced plans to hire 385 workers and invest $3.6 million in Music City. (Source: San Francisco Business Times, April 29.)
- In late February, recruiting firm IQTalent Partners Inc. announced that it is moving its headquarters from Silicon Valley to Nashville, where it is doubling the size of its facilities. The company grew its Nashville office from 90 to 150 employees in 2018, and plans additional hiring this year, a spokesperson said. It will maintain a small office in San Francisco. Co-founder Chris Murdock said: “Although I worked in three different cities, and then founded a company in Silicon Valley, ultimately, I wanted to return to Nashville. The people, the economy, the culture – all of it – just fits the way IQTalent Partners does business.” (Source: Nashville Business Journal, February 20.)
- The owners of the Briar Patch, a Sacramento cigar shop and lounge that has been a Capitol community institution, announced that the business is closing because of taxes and regulations. “The onslaught of legislation has caused many increases in the cost of doing business, due mostly to increased license fees and compliance costs, that we can no longer keep up,” the owners wrote in an online announcement. “We wish this were not the case, and we hope that in the future consenting adults are still allowed to enjoy the use of tobacco without further taxation and regulation.” The business has been operating since the 1970s and once had another site in the Sacramento area, but closed that location in 2017. The current owners, who have run the shop for more than 12 years, did not indicate how many employees will lose their jobs when it closes later this month.
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