Financial firms move more employees off Wall Street

New York /
Jul.July 02, 2012 02:30 PM

As new types of businesses increasingly descend upon Wall Street, the old guard is beginning to depart. According to the New York Times, many financial institutions are moving middle-tier workers out of the Financial District to cheaper office space around the country.

With taxes, labor costs and real estate expenses so high in New York, more companies have begun “near-shoring” workers, or moving them outside of financial centers but keeping them in the U.S. While low-level jobs have already moved off-shore and top-tier traders and bankers will be in the city for the foreseeable future, accountants, human resource employees and legal support, to name a few, are being moved to places like North Carolina and Jacksonville, Fla.

For example, Deutsche Bank has cut 500 from its New York-area workforce while adding 400 jobs in Jacksonville. Credit Suisse has dropped 500 employees in the New York-area while increasing staff in North Carolina by 450. Goldman Sachs’ New York-area workforce, which has transformed Battery Park City, has held flat since the end of 2009, but its Salt Lake City employee count has doubled to 1,400. All the firms cited cost savings as reasons for the move.

With so many middle-tier Positions On Wall Street many analysts expect this trend to continue, and that could weaken the demand for Financial District office space as firms’ leases come up for renewal. [NYT]


Related Articles

arrow_forward_ios
Co-head of Goldman’s Europe Tavis Cannell with the Paris building (Google Maps, Goldman Sachs)
Goldman Sachs spends $119M on Paris office, retail building
Goldman Sachs spends $119M on Paris office, retail building
973 Fifth Avenue and David Leuschen (Google Maps, Riverstone Holdings)
Former Goldman Sachs partner lists Upper East Side townhouse for $80M
Former Goldman Sachs partner lists Upper East Side townhouse for $80M
Entera CEO Martin Kay (Entera, iStock)
Single-family data startup Entera raises $32M
Single-family data startup Entera raises $32M
Nightingale’s Eli Schwartz and 111 Wall Street (Credit: Google Maps)
Nightingale, Wafra pay $220M for land under 111 Wall
Nightingale, Wafra pay $220M for land under 111 Wall
Petros Pace CEO Mansoor Ghori with 111 Wall Street (Petros, Google Maps)
Wall Street scores first C-PACE deal in New York City’s history
Wall Street scores first C-PACE deal in New York City’s history
Deutsche Bank CEO Christian Sewing (Getty Images)
Time Warner Center is now the Deutsche Bank Center
Time Warner Center is now the Deutsche Bank Center
Deutsche Bank Chief Financial Officer James von Moltke (Getty)
Deutsche Bank eyes hybrid model while JPMorgan plans office return
Deutsche Bank eyes hybrid model while JPMorgan plans office return
From left: Wells Fargo’s Charles Scharf, SL Green's Marc Holliday, Goldman Sachs’ David Solomon and One Vanderbilt (Getty)
Goldman Sachs, Wells Fargo leading $2.25B refi of One Vanderbilt
Goldman Sachs, Wells Fargo leading $2.25B refi of One Vanderbilt
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...