Wall Street Firms Consider Moving Jobs from NYC, Study Says

(Bloomberg) -- Work from home and the reduced need for employees in New York’s financial and professional-services industries have prompted some companies to consider paring their presence in the city by at least 20%, according to a study on the economic impact of Covid-19.

About one in four office employers intend to reduce their footprint by at least a fifth, and about 16% expect to move jobs out of the city, according to the Partnership for New York City, an influential group composed of corporate chief executives, which enlisted over a dozen consulting firms to work for free to conduct the study.

Companies also expect only 10% of their employees to return to the office this summer and just 40% by year-end, according to the survey, which was conducted in May and released Monday.

The study estimated that city and state tax revenue losses may exceed $37 billion during the next two years, as the state’s economic output drops 7%. The city’s economy could shrink as much as 13% this year.

The report concluded that top priorities beyond health should be aiding small and minority-owned businesses; improving online education and job training; producing affordable housing; reforming budgeting and taxes; and advancing renewable energy, digital infrastructure and freight-delivery optimization.

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