In what might be seen as the entirely predictable outcome of his September decision to move to Florida in search of lower taxes, billionaire Carl Icahn is making layoffs in New York.
Icahn Capital Management plans 27 layoffs spread between its 767 Fifth Avenue and 445 Hamilton Avenue offices as a result of its plan to move to Miami, according a filing with the New York Department of Labor. The layoffs are scheduled for 31 March 2020, which is when the Miami move is due to take place. The filing gives the reason as 'plant closure.'
Icahn Capital is an investment advisory firm within Icahn Enterprises, managing a combination of equity and fixed income portfolios. Reports in September suggested Icahn employed 50 people in New York City and that 'more than half' would move to Florida on relocation packages of $50k. This seems to have been wishful thinking: a majority would clearly prefer to stay in New York, higher taxes or not.
Icahn could benefit from job cuts irrespective of its migration to Florida. In the nine months to September 2019, parent company Icahn Enterprises made a net loss of $941m. Assets under management fell from $8.2bn to $7.5bn over the same period.
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