GTT: California Egress Continues

The Exodus from California continues.  This time, it’s a big one — Toyota

Toyota (TM) is expected to announce today the shift of hundreds of jobs in its sales and marketing department from Southern California to a location outside Dallas, according to several reports.

Toyota did not immediately respond to a request for comment, but an announcement could come later today after Toyota officials discuss the move with employees at their Torrance, Calif., facility.

While Toyota gained its early foothold in the U.S. in Southern California, the car maker now makes most of its U.S. built cars in Texas and the South. The move is apparently designed to consolidate its business operations within a smaller area.

GTT: California Exodus

GTT: California Exodus

The Los Angeles Times said about 5,300 people work at Toyota’s Torrance complex but that it was uncertain on Monday how many of those employees will be asked to transfer to Texas and whether the shift would entail layoffs.

The newspaper, citing people with knowledge of Toyota’s plans, said the move is expected to take several years.

Employees in Toyota’s Torrance offices and other U.S. locations asked to move to Texas will be offered relocation packages and financial assistance.

The new Texas headquarters is expected to house at least three units, including Toyota Motor Sales USA, Toyota Financial Services and Toyota Engineering and Manufacturing North America. The move will be scheduled to begin in August and will take place in stages through the end of 2016.

The move is seen as a blow to Southern California, where an undisclosed number of jobs will be lost in an important sector for the region, and a big win for Texas, which will be adding hundreds of new, mostly white collar, well-paying jobs.

Texas Governor Rick Perry has made several trips to California in a very-public effort to lure companies and their jobs to Texas, touting his state’s lower corporate taxes and less regulated business environment.

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