California Gov. Gavin Newsom listens to community leaders speak during a press conference at Controlled Thermal Resources "Hell's Kitchen" geothermal and lithium drill site in Calipatria, Calif., on Monday, March 20, 2023. Governor Newsom Tours Lithium Valley 5638
Los Angeles, California – The migration of major businesses from California to Texas continues, with hair care giant John Paul Mitchell Systems becoming the latest company to shift its headquarters to the Lone Star State. In a move announced last week by Texas Governor Greg Abbott, the company will leave its longtime base in Southern California’s Santa Clarita and establish new roots in Wilmer, a town of roughly 6,000 residents just southeast of Dallas.
John Paul Mitchell Systems, the force behind widely used salon products like Paul Mitchell and Neuro styling tools, has been a familiar name in California’s beauty and education landscape for decades. The company operates partner schools across the state, including locations in San Francisco, San Jose, and Pleasant Hill. But its departure adds another high-profile name to the growing list of corporations decamping from California in recent years.
Founded in Hawaii in 1980 and once headquartered in Beverly Hills and Century City, the company has long balanced a global product footprint with its California brand identity. In 2022, John Paul Mitchell Systems reported $1.1 billion in revenue. Now, along with its new headquarters, the company plans to build a global distribution center in Wilmer — a move expected to bring 80 new jobs and a $12 million capital infusion to the Texas economy.
“Texas is the headquarters of headquarters,” Abbott said, touting the relocation as further evidence of the state’s appeal to business leaders disenchanted with California’s regulatory landscape.
Deeper political ties may also play a role. Co-founder John Paul DeJoria, a longtime Austin resident, has contributed over $70,000 to Abbott’s political campaigns since 2021, according to OpenSecrets, with donations dating back to 2013. Facilitating the move is a $640,000 grant from the Texas Enterprise Fund, a business incentive program overseen by Abbott’s office.
California’s loss of John Paul Mitchell Systems follows a broader trend. In recent years, firms such as Chevron, SpaceX, and Realtor.com have opted to leave the Golden State, often citing high operational costs, stringent regulations, and unpredictable tax policy. The moves have intensified political debate over whether California’s economic model — built on innovation, environmental standards, and labor protections — remains competitive in the face of Texas’ low-tax, pro-growth pitch.
For now, the latest departure highlights a growing tension between economic ambition and policy ideology, as companies navigate where to best build their futures. John Paul Mitchell Systems has not commented on the decision.
