Investment banking giant, Goldman Sachs is considering moving its $8 billion asset management division out of New York

Share to friends

Goldman Sachs is reportedly working on a plan to move its money-spinning asset management division out of New York, in what experts consider another blow to New York if it happens.

The financial titan is considering relocating its $8 billion-revenue-generating asset-management division to Florida to enjoy lower tax, sources told Bloomberg.

The company has not made any decision yet as it is also considering moving to Dallas, Texas, according to the report.

“We are executing on the strategy of locating more jobs in high-value locations throughout the US, but we have no specific plans to announce at this time,” a company rep told Bloomberg in a statement.

READ ALSO  Twitter says it is exploring letting users receive payments from followers

The coronavirus pandemic, with subsequent digital adoption, has prompted many company executives to rethink the need for gigantic commercial buildings which accrue the largest expense yearly after payroll.

In August, billionaire investor Carl Icahn moved permanently from New York to Florida.

Paul Singer is reportedly working on a plan to move the headquarters of his $41 billion hedge fund Elliott Management from Manhattan to Florida.

Manhattan now has the highest number of empty office spaces since the 9/11 attack, Bloomberg said.

Finance institutions and the money managers are not the only ones thinking seriously about moving out of pricey cities. Tech executives are also planning their exits from the San Francisco area. Charles Schwab, long headquartered in San Francisco, will move its headquarters to the Dallas area, sources said.

READ ALSO  Checkered tenure of the outgoing AT&T CEO Randall Stephenson

New York’s economy has been reeling from the coronavirus, as businesses battle reduced operations amid government restrictions and public health crisis.