A new analysis from Focus NJ has shed light on the significant fiscal strain caused by major corporations downsizing, expanding, or relocating out of New Jersey. The report, titled “Missed Opportunities,” examines eight high-profile business decisions, revealing a cascading impact on the state’s economy that extends far beyond initial job losses.
Focus NJ, an independent nonpartisan research center, analyzed the departure and relocation of companies including Bristol Myers Squibb, Verizon, Samsung, Eos Energy Enterprise, Hertz, Walmart, Johnson & Johnson, and Honeywell International.
The study found that these eight selected decisions alone resulted in the loss of:
- 7,000+ jobs.
- Nearly $675 million in annual payroll.
- $27.3 million in annual state income tax revenue.
Beyond these primary losses, the state faces substantial “downstream” fiscal damage, including more than $6.7 million in lost annual sales tax revenue and $20.9 million in potential property tax revenue that instead benefited other states through office and manufacturing investments.
“Often when companies leave or lessen their footprint, we tend to just look at the jobs lost,” Althea Ford, executive director of Focus NJ said. “That’s important, but it’s not the only metric we should be looking at. The cascading fiscal impacts on state and local revenues also bear heavily on school districts and other budget line items that are also critical to our way of life in New Jersey.”
The report highlights specific major losses, such as:
- Bristol Myers Squibb: The 2025 move to Massachusetts cost New Jersey $190.4 million in payroll and $8.4 million in income tax revenue.
- Samsung: The recent headquarters departure to Texas is projected to result in $115.2 million in payroll tax loss and $4.7 million in income tax losses for the state.
- Johnson & Johnson: The expansion of office and manufacturing facilities into North Carolina and Pennsylvania represents a massive missed opportunity for New Jersey, which the report estimates could have generated $13.3 million in yearly tax revenue if those investments had stayed local.
Researchers warn that these departures are not isolated events but part of a troubling trend that threatens New Jersey’s long-term stability.
“As New Jersey’s business environment struggles to compete, the cumulative effect of missed opportunities that we see in this analysis pose a significant and ongoing threat to New Jersey’s long-term fiscal stability and economic vitality,” Jack Ramirez, a Research Analyst at Focus NJ said.
The full report, which serves as a snapshot of recent corporate departures, can be viewed through the Focus NJ Center for Economic Research & Workforce Solutions.
