Newark-based Prudential Financial embarked on its fourth round of layoffs of 2024, according to state filings with the New Jersey Labor Department, for a combined total of 634 people being let go through the end of next year.
The move comes as Prudential, a Fortune 500 company, faces increased risk in the commercial real estate lending sector, said a note by Wall Street ratings agency Moody’s.
That along with “alternative investments” and junk bonds “could weaken capital if there is an economic downtown,” Moody’s said. More broadly, some of the world’s largest banks and financial institutions have cut their head counts to tighten budgets amid uncertain economic times.
This latest layoffs affect 108 employees between December and April 2025. Last year, Prudential let go of 243 staff members, all in senior leadership positions, amid a $200 million restructuring in the fourth quarter.
“We’re taking steps to create a leaner, faster and more agile company, including simplifying our management structure, by reducing management layers, complexities and costs,” Chief Executive Officer Charles Lowrey said during an earnings call last year.
Broken down, the layoffs are as follows:
- 145 announced in February.
- 146 announced in June.
- 235 announced in September.
- 108 announced in November.
A Prudential spokesperson said in a written statement that the company routinely eliminates “certain roles that no longer align with Prudential’s strategy.”
“Prudential Financial continually reviews its organizational structure to ensure it is meeting the evolving needs of its customers and maintaining its competitive position in the marketplace,” the spokesperson said.
In 2012, New Jersey officials awarded Prudential a $210 million tax break in support of its plan to build its sprawling office tower in downtown Newark.
The firm has over 40,000 employees worldwide and was founded in Newark in 1875.
Daniel Munoz covers business, consumer affairs, labor and the economy for NorthJersey.com and The Record.
Email: [email protected]; Twitter:@danielmunoz100 and Facebook
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