NJ is under strain!
Job cuts have increased since the start of the year. In Q1, 28 companies announced 3,618 job cuts. That’s more than double the 1,753 layoffs in the same period last year. By April, the total had passed 4,100. In June, another 950 cuts were projected.
In January, about 68,000 people were laid off or discharged. That gave New Jersey a layoff rate of 1.6%. It was higher than the national rate of 1.3%. The state’s unemployment rate was 4.6% in January. While it may have improved by April, early 2025 showed a volatile labor market.
Pharmaceuticals are seeing large cuts. This industry is a major employer in New Jersey.
- Bristol Myers Squibb announced 290 layoffs in February, followed by another 516 in May. These cuts will continue through March 2026. The company aims to cut $1.5 billion in costs.
- Novartis plans to cut 427 U.S. jobs reporting to its East Hanover site. The layoffs will occur between June and October.
- Reckitt Benckiser will eliminate 190 jobs in Parsippany by August.
- Kyowa Kirin is cutting 52 jobs in Princeton.
Retail is also shrinking.
- Walmart will cut 481 corporate jobs in Hoboken. These roles are being relocated to Arkansas.
- JoAnn Fabrics is closing all 11 of its New Jersey stores. That means 262 layoffs by June.
Logistics is another struggling sector.
- Geodis Logistics is closing its Monroe Township facility. That will result in 426 layoffs by the end of July.
- Additional layoffs are expected from Geodis-related operations across the state.
- Need It Now Delivers also filed notices tied to Geodis, signaling further reductions.
Financial services are scaling back.
- JP Morgan Chase cut 121 jobs in February and 145 more in April. These cuts hit Jersey City in May and June.
- Evernorth, a Cigna subsidiary in Morris Plains, cut 62 jobs.
Other sectors are impacted too.
- Summit BHC will cut 96 jobs in Bridgeton by July. It provides behavioral health and addiction treatment.
- The Reformed Church of Highland Park Affordable Housing Corp. laid off 195 employees in February. This was linked to federal action halting refugee resettlement programs.
Consumer product companies are shedding staff.
- Mead Johnson Nutrition (now owned by Reckitt) is cutting 190 jobs. The layoffs are staggered through August.
- Barrette Outdoor Living in Westmont is laying off 120 workers by July.
In tech, layoffs are smaller but still notable.
- Planitroi, an IT security firm in Denville, laid off 100 people in February.
These layoffs are happening amid broader economic pressure. Inflation and tariffs are making companies cautious. Many are cutting costs ahead of potential slowdowns.
New Jersey’s high corporate tax rate (11.5%) is a concern for businesses. It may be discouraging investment and expansion.
Still, not all sectors are shrinking. Newark’s tech sector is booming. Jobs in AI, software, and data analytics are rising fast. Major investments are flowing in. This growth offers some hope.
In short, New Jersey’s labor market is shifting. Pharmaceuticals, retail, logistics, and finance are shedding jobs. Strategic shifts and economic headwinds are driving the cuts. Yet some sectors, like tech, continue to expand. The state is weathering a complex period of adjustment.