Finance
UBS latest bank to announce NJ job cuts as finance sector shrinks
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May Day Rally in Newark for NJ unemployment expansion: Video
Labor activists and unions gathered for a May Day Rally at Military Park in Newark on May 1, 2024, calling for a NJ unemployment benefits expansion.
Swiss bank UBS is laying off 51 employees at its Weehawken office, public records show, as New Jersey’s banking and finance sectors more broadly grapple with tightening budgets amid uncertain economic times.
UBS is reportedly looking to trim its costs by $13 billion, which includes cutting one in every 12 employees, according to Reuters. A spokesperson for UBS declined to comment for this story.
Data from state filings showed that five financial institutions announced New Jersey layoffs so far in 2024: The Bank of New York Mellon Corporation, TD Bank, Prudential Financial, Citibank and JPMorgan Chase Bank.
Some of those banks — including Citibank and Charles Schwab — are cutting their head counts by the thousands or tens of thousands across their entire operations.
Nationwide, Charles Schwab is cutting 2,000 employees and Citibank 20,000 of its staff.
“Banks are reducing back-office costs, and this includes people and head count reductions, unfortunately,” said Christopher Marinac, director of research at Janney Montgomery Scott, a financial services firm. “Overall, bank earnings are stable and generally not growing. Further, bank balance sheets are not expanding much this year.”
One factor — the Federal Reserve, which has raised interest rates 11 times since the COVID-19 pandemic. That pushed mortgage rates higher for homebuyers, meaning fewer people obtained mortgages, prompting Wall Street to respond with layoffs, said a report by CNBC.
That resulted in the state’s first job losses in half a year, unemployment figures show.
“Banks are being careful on new lending and trying to retain more capital as the Federal Reserve is tightening standards and raising capital requirements soon,” Marinac said.
James Hughes, an economist at Rutgers University, told NorthJersey.com that white-collar jobs in banking and finance have become saturated after a two-year hiring spree that followed the COVID-19 pandemic.
Layoffs this year
New Jersey companies are letting go of more than 4,600 employees in 2024, public records show.
The layoffs include 2,774 job cuts announced in 2023 for this year, and another 1,847 cuts announced in the first three months of 2024.
Those cuts come at a time when New Jersey’s workforce posted a net loss in jobs for the first time in six months. Meanwhile, the state unemployment rate has hovered at 4.8% since September, state data shows.
Daniel Munoz covers business, consumer affairs, labor and the economy for NorthJersey.com and The Record.
Email: munozd@northjersey.com; Twitter:@danielmunoz100 and Facebook
Large language model developer Anthropic PBC has secured $2.5 billion in debt financing, CNBC reported today.
The loan is structured as a revolving credit facility. Standard debt financing deals require the borrower to pay back the funds in a fixed number of installments. A revolving credit facility, in contrast, has no such requirement. Additionally, the borrower can draw down funds again after repaying the loan.
Anthropic’s revolving credit facility will run for five years. It’s underwritten by Morgan Stanley, Barclay, Citibank, Goldman Sachs, JPMorgan, Royal Bank of Canada and Mitsubishi UFJ Financial Group. Several of those banks also backed a $4 billion revolving credit facility that OpenAI, Anthropic’s top rival, raised last year.
“This revolving credit facility provides Anthropic significant flexibility to support our continued exponential growth,” said Anthropic Chief Financial Officer Krishna Rao.
The company previously raised $8 billion from Amazon.com Inc. in the form of convertible notes. A convertible note is a type of loan that can be turned into shares. Amazon turned a sizable portion of Anthropic investment into shares during the first quarter, which was reportedly one of the reasons its earnings per share surpassed analyst expectations.
In conjunction with the announcement of its revolving credit facility, Anthropic disclosed today that its annualized revenue topped $2 billion in the first quarter. That represents a year-over-year increase of more than 100%. In the same time frame, the number of customers that pay at least $100,000 for Anthropic’s AI models jumped eightfold.
The company regularly launches new products to maintain its sales growth.
Earlier this month, Anthropic updated the application programming interface that customers use to integrate its LLMs into their software. The company added a tool that allows its LLMs to search the web if the information requested by a user isn’t readily available. Pricing starts at $10 per 1,000 searches.
A few weeks earlier, Anthropic debuted a new Max plan for its Claude chatbot. It’s available in two editions priced at $100 and $200 per month, respectively. They offer usage caps up to 20 times higher than the most affordable paid Claude tier.
Anthropic’s largest competitors are experiencing rapid sales growth as well.
In March, Bloomberg reported that OpenAI expects to triple its revenue to $12.7 billion by the end of 2025. More recently, a source told Reuters that Cohere Inc. has doubled its annualized recurring revenue since the start of the year. The company reportedly makes most of its revenue from providing highly regulated organizations with customized AI models that they can run on their own infrastructure.
Image: Anthropic
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Release Date: May 15, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Galiano Gold Inc (GAU) maintains a robust financial position with $106 million in cash and zero debt.
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The company achieved significant exploration success at Abore, identifying a promising high-grade zone beneath the main pit.
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A 75% increase in gold production is projected by 2026, indicating strong future growth potential.
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The secondary crusher project is on track for completion in Q3 2025, which is expected to enhance mill throughput.
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Operating costs are being well managed, with unit costs for mining at Abore and Assassi in line with expectations.
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The company experienced two lost time injuries (LTIs) during the quarter, reflecting a need for improved safety measures.
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An unscheduled two-week mill shutdown due to repairs reduced production by approximately 5,000 ounces.
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Net earnings were negatively affected by fair value adjustments to the hedge book, resulting in a net loss of $29 million.
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The impact of high gold prices and increased government levies could raise all-in sustaining costs (ASIC) by up to $55 per ounce.
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Production figures for Q1 2025 were lower than expected, moving towards the lower end of guidance for the year.
Q: Can you walk us through your intermediate and longer-term expectations for drilling, especially in the south pit? A: Unidentified_5 (Exploration VP): We focused on the south pit to confirm the robustness of the high-grade zone, which exceeded our expectations. The strike length expanded from 90m to 180m. We discovered a new high-grade zone below the reserve pit, which was unexpected. We plan to test deeper targets along the ore body and explore both open pit and underground mining scenarios.
Q: What happened with the cost of the secondary crusher equipment versus expectations, and what downtime should we expect for the install? A: Unidentified_4 (CFO): The secondary crusher project remains on budget, with most equipment costs paid in installments. We expect minimal downtime for installation, as most pre-works can be done while the plant is running. The shutdown for tie-in will be brief, and we plan to conduct other maintenance simultaneously.
Q: Should we model any significant impact from the crusher installation shutdown? A: Unidentified_3 (COO): We don’t expect a significant impact from the shutdown. We have contingencies in place, and the production forecasts already account for this downtime.
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