A decade after UBS gets $20M state loan, headcount plummets
Ten years ago, then-Gov. Dannel P. Malloy and executives of one of the world’s largest banking firms gathered at the company’s hub in downtown Stamford to announce that it would be staying in the state.
STAMFORD — International banking corporation UBS brought its corporate headquarters and thousands of employees to Connecticut in 1994 to fanfare and tax breaks from the state.
In 2007, staffing peaked at the Stamford headquarters with 4,000 employees. When the Great Recession hit in 2008, the banking giant began shedding staff as its profits dropped.
In 2011, the state gave the banking giant $20 million to keep UBS from leaving with loan forgiveness if staffing in Connecticut didn’t fall below about 2,000.
A decade later, in a smaller space at 600 and 750 Washington Blvd., and with about 1,140 employees now working in Stamford, Hearst Connecticut Media asked each of the four candidates running for Stamford mayor for their assessments on the job losses and the $20 million loan awarded to the company.
Joe Corsello
A musician and former police officer who is endorsed by the Stamford Republican Town Committee
“UBS job losses are of concern as are job losses of all employers — large and small. Every lost job affects the community and economy.
“Stamford needs leadership with the foresight to put together more sustainable long-term investments ... in growing industries such as biotech, maritime, health care, where employees are not remote — and not in industries that are declining or becom
ing obsolete (and) investing in industries with higher paying jobs — bringing employees who will buy homes and support local business such as restaurants and shops.”
Bobby Valentine
A former Major League Baseball manager who is running as an unaffiliated candidate
“When UBS brought almost 3,000 jobs to Stamford a decade ago, our local economy was a significant beneficiary. The unfortunate departure of most UBS personnel, and the corresponding decline in corporate advocacy, has had a negative impact on our community, schools and retailers.
“A mayor must attract and retain a healthy environment for businesses large and small so as to benefit all residents, public parks and cultural activities. There are ample reasons to create incentives that encourage corporate investment, and as mayor of Stamford, I will collaborate with the governor to actively recruit institutions that will commit resources to achieving real improvements without burdening our taxpayers.”
Caroline Simmons
A state representative who is endorsed by the Stamford Democratic City Committee and the state Independent Party
“Despite the downsizing taking place at UBS, Stamford continues to have a strong financial services sector which did not suffer as many job losses overall amidst the coronavirus pandemic as it did during the 2008 financial crisis. Much like our city, our economy is going through a transformation due to the pandemic as workers redefine their relationship with the office. Stamford will continue to attract companies and jobs by demonstrating it can adapt to the transformation in our economy.
“It was concerning to see the lack of return on investment on taxpayer dollars from that state investment and that is why as co-chair of the Commerce Committee, I worked hard to to get rid of the state’s corporate tax break program. Instead we revamped the program to focus on small businesses and to ensure businesses create the jobs promised first before getting incentives. As mayor, I would be a champion for small businesses and local jobs and would work with the state to ensure that we are not giving large corporate tax credits to companies that then leave our city.”
David Martin The current mayor of Stamford who collected sufficient signatures to force a Democratic
Primary
“Every job in our city is important to us. When working with large corporations such as UBS, it’s important to realize that they are constantly evolving their business model, whether that means changing the location of their headquarters, merging jobs or downsizing altogether. These changes are not a reflection of their working relationship with our city and are made independently within their company for their own reasons.”
“The DECD (Department of Economic and Community Development) has far more insight into companies and proposals that they are able to make, so I can’t comment on their decision. I can only assume their decision is in the best interest of the citizens of our state.”