Layoffs Spike as Sherrill Budget Punishes Businesses

Got story updates? Submit your updates here. ›

New Jersey employers are on a dizzying pace of new layoffs in 2026, with some of the state's biggest companies announcing thousands of job cuts in recent weeks. Business groups warn that Gov. Mikie Sherrill's anti-business policies, including a series of tax hikes and increased costs of doing business, are to blame for the surge in layoffs.

Why it matters

The wave of layoffs in New Jersey highlights the growing tensions between the state government and the business community. Sherrill's proposed budget includes several tax policy changes that many business leaders say will discourage hiring and investment in the Garden State, potentially further damaging the state's economic recovery.

The details

When Sherrill unveiled a record $60.7 billion spending plan, it included a series of tax policy changes aimed at generating new revenue. Many of these changes are a de facto tax hike on businesses, and the increased costs of doing business in New Jersey will inevitably be passed on to consumers. Several proposals affecting businesses—particularly a new employer Medicaid assessment and limits on certain tax deductions—are also raising alarms among business leaders who say Sherrill's plans could discourage hiring and investment.

• By the end of March, based on New Jersey WARN Notices, about three dozen employers across New Jersey have announced 4,508 layoffs this year so far.
• That's tracking above 2025, when New Jersey employers announced just over 3,600 layoffs from January through March.
• And, it continues a discouraging upward trend — as this year's first quarter of announced layoffs across the state is more than two-and-a-half times the first quarter of 2024 (1,753 layoffs).