Swiss bank UBS is laying off 51 employees from its Weehawken office, public records show, as New Jersey's banking and finance sector grapples with broader budget tightening amid economic uncertainty.
Reuters reported that UBS is considering cutting $13 billion in costs, including cutting one in 12 employees. A UBS spokesman declined to comment on the matter.
Five financial institutions — Bank of New York Mellon, TD Bank, Prudential Financial, Citibank and JPMorgan Chase — have announced job cuts in New Jersey through 2024, according to data from state filings.
Some of these banks, including Citibank and Charles Schwab, are cutting thousands, or even tens of thousands, of jobs across their operations.
Charles Schwab is cutting 2,000 employees nationwide, and Citibank is cutting 20,000 employees.
“Banks are cutting back-office costs, and unfortunately that includes reducing headcount,” said Christopher Marinak, director of research at financial services firm Janney Montgomery Scott. “Overall, bank earnings have been stable and generally not growing. Additionally, bank balance sheets have not expanded much this year.”
One factor is the Federal Reserve, which has raised interest rates 11 times since the COVID-19 pandemic began, which has led to higher mortgage rates for homebuyers and fewer people taking out mortgages, causing Wall Street to respond with job cuts, CNBC reported.
As a result, the state lost jobs for the first time in six months, according to unemployment statistics.
“With the Fed tightening standards and soon to increase capital requirements, banks are being cautious about making new loans and looking to preserve more capital,” Marinak said.
Rutgers University economist James Hughes told NorthJersey.com that white-collar jobs in banking and finance have become saturated after a two-year hiring boom following the COVID-19 pandemic.
This year's workforce reductions
New Jersey companies plan to lay off more than 4,600 employees in 2024, public records show.
The job cuts include 2,774 job cuts announced in 2023 this year and a further 1,847 job cuts announced in the first three months of 2024.
The cuts come at a time when New Jersey's workforce recorded its first net job loss in six months, while the state's unemployment rate has remained at 4.8% since September, state data showed.
Daniel Munoz covers business, consumer affairs, labor and the economy for NorthJersey.com and The Record.
Email: munozd@northjersey.com; twitter:Daniel Munoz and Facebook
