Profimex Market Review Update – December 10, 2020
Vornado Realty Trust Cuts 70 Staff Members
In response to operational challenges, Vornado Realty Trust announced that the firm will cut 70 employees and reduce the remaining employee’s compensation. The firm’s strategy is expected to reduce costs by about $35 million per year. In addition, there will be certain management replacements, such as Vornado’s president, Michael Franco, who will, in addition to his current position, also become the firm’s chief financial officer. This announcement supports a recent report, published by FPL Associates, that 16% of REITs reduced its compensation schemes.
Goldman Plots Florida Base for Asset Management in a Blow to New York
New York City has been America’s hub for financial services. However, because of the pandemic, the city now has the most office space available since 2001 and several firms have further decided to relocate their Manhattan office partially, or entirely. Goldman Sachs Group Inc. executive have been to Florida recently to see several potential office locations, to relocate one of the firm’s key divisions, asset management. The firm is therefore going to join several other firms, relocating to Florida, to take advantage of tax and lifestyle benefits.