Apparently, they are leaving. See some of the comments here. While some companies will keep a minor number of employees in California, I would recommend that they leave completely. California has a habit of taxing all income to a company that is based in the state even if it does most of its business outside the state. CA tried to tax sports teams from other states on any income they took in each time they played a game in the state. Don't know how that wound up, but it's typical of the greed of CA's politicians.