Broadridge Financial Solutions seeks to downsize on Long Island, applies for tax breaks
Broadridge Financial Solutions, which is seeking tax breaks from the Suffolk County Industrial Development Agency, has four buildings in Edgewood. Credit: Newsday/Alejandra Villa Loarca
Broadridge Financial Solutions Inc., one of Long Island's largest public companies, is considering closing some of its local offices and moving operations and jobs out of state to reduce costs, documents show.
The Lake Success-based company is seeking additional incentives from Suffolk County and New York State to preserve 2,200 jobs, including more than 1,500 in the county, according to an application for tax breaks from the county's Industrial Development Agency.
IDA officials on Friday confirmed receipt of the aid request and said it would be considered by the agency’s board of directors on Thursday. State records show the company won IDA help for projects in 2012 and 2017.
Broadridge is weighing whether to close its Lake Success headquarters and reduce its presence in the Edgewood neighborhood of Islip Town, where it has four buildings, states Chief Procurement and Real Estate Officer Frederic Khalil in the application.
Some of Broadridge's local operations could be moved to California, Connecticut, Florida, Tennessee and Texas, the application states.
If the cost-saving plan were implemented, Broadridge's workforce in the state would shrink by about 1,500 people to about 750. The company also would save between $250 million and $270 million over 10 years, according to the application, which was posted on the IDA's website on Friday.
Broadridge serves as Wall Street’s back office, delivering billions of documents to shareholders each year and processing trillions of dollars in stock trades each day. Securities filings show the company reported a profit of $839.5 million for the year ended June 30 on revenue of $6.9 billion and has more than 14,000 employees worldwide.
The leases on six Broadridge buildings in New York are coming due, so the company is reevaluating its footprint with an eye toward cost savings, availability of employees, remote work and government incentives, the application states.
To maintain its Suffolk operations, Broadridge is asking the IDA for a sales-tax exemption of up to $3.7 million on construction materials and equipment for a $90.1 million renovation of two buildings in Edgewood. The company also wants 15 years of property tax savings, according to the application.
In return, Broadridge would retain 1,531 jobs in the county that pay, on average, $111,353 per year.
Broadridge also is seeking assistance from New York State.
“For decades, Broadridge has called Long Island home, and ESD is in active conversations to ensure that continues,” said Emily Mijatovic, a spokeswoman for Empire State Development, the state's primary business aid agency. Maura Balaban, a spokeswoman for the state Power Authority, confirmed that Broadridge is a customer.
Broadridge spokesman Gregg L. Rosenberg said the company appreciates that Suffolk and state leaders “understand that there is significant competition from other states in attracting strong and growing companies” and seek to address “this competition.”
James T. Madore writes about Long Island business news including the economy, development, and the relationship between government and business. He previously served as Albany bureau chief.
