Broadridge Financial Solutions Considers Closure of Local Offices
Broadridge Financial Solutions Inc., a major player among Long Island’s public companies, is contemplating shutting down some of its local offices. The aim? To shift operations—and potentially jobs—out of state to cut costs, as per recent documents.
The Lake Success-based firm is asking for additional incentives from Suffolk County and New York state to keep around 2,200 jobs in the region, which includes more than 1,500 positions within the county. This request forms part of a tax cut application submitted to the county’s industrial development agency.
An official from the IDA confirmed they have received the Assistance Request and noted it will be reviewed by the board on Thursday. Notably, records indicate that Broadridge received IDA support for similar projects in both 2012 and 2017.
Currently, the company is evaluating the future of its headquarters in Lake Success and may reduce its footprint in the Edgewood district of Islip Town, which includes four buildings involved in the application process.
The company is also considering moving some of its local operations to states like California, Connecticut, Florida, Tennessee, and Texas.
If this cost-saving strategy goes into effect, Broadridge’s workforce in the state could shrink from about 1,500 to around 750. The expected savings over a decade might range between $250 million and $270 million, based on the application they posted on the IDA website.
As a key back-office provider for Wall Street, Broadridge distributes billions of documents to shareholders every year and processes enormous amounts of stock transactions daily. The company’s financial highlights for the year ending June 30 reveal a profit of $839.5 million on revenues of $6.9 billion, with a global employee base exceeding 14,000.
With six of its buildings in New York pending lease renewals, Broadridge is reassessing its presence, focusing on factors like cost efficiency, employee availability, remote work possibilities, and government incentives.
To keep its operations in Suffolk, Broadridge is pursuing an IDA sales tax exemption of up to $3.7 million for construction materials in a $90.1 million renovation of two Edgewood buildings. They are also looking for 15 years of property tax savings in return for maintaining approximately 1,531 jobs that average about $111,353 in annual salary within the county.
Additionally, support from New York State is being sought by Broadridge.
As Emily Mijatovic from Empire State Development, the state’s primary business support agency, commented, Broadridge has long been a fixture on Long Island, and discussions are ongoing to ensure their continued presence.
Broadridge spokesperson Greg L. Rosenberg expressed gratitude to Suffolk and state leaders for recognizing the competitive environment with other states pertaining to attracting thriving businesses and expressed hope for meaningful responses to this competition.
