Escape from New York: high costs drive out AllianceBernstein
One of Wall Street’s oldest firms is throwing in the towel and relocating to Nashville, citing financial costs.
AllianceBernstein plans to move its headquarters, chief executive and most of its New York staff to the Music City, according to The Wall Street Journal, citing people familiar with the matter.
The money manager, which has been located in New York for 51 years, is undergoing broad cost-cutting measures related to the pressure of index tracking funds and low-cost investing.
According to the Journal, citing a memo sent to employees, the lower state, city and property taxes of Nashville compared with New York were among the reasons for the move.
Bloomberg reported that relocations last year contributed to the first decline in New York City’s securities workforce since 2013.
In 2017, there were about 176,900 people in the industry in New York, 6% fewer than before the financial crisis, according to Bloomberg, citing data from the state comptroller. While securities industry employment shrank, jobs in the private sector grew by 23% since the financial crisis.