The Worker Adjustment and Retraining Notification Act continues to serve as an early warning system for mass layoffs across New Jersey, and the 2025 data reveals troubling trends that demand attention from policymakers, business leaders, and workers alike.
Understanding the New Jersey WARN Act
The New Jersey WARN Act, officially known as the Millville Dallas Airmotive Plant Job Loss Notification Act, represents one of the nation's most worker-protective employment laws. Following significant amendments that took effect on April 10, 2023, New Jersey established itself as a leader in safeguarding employees during periods of workforce reduction.
The law now requires employers with 100 or more employees to provide 90 days' advance notice before mass layoffs, plant closings, or transfers of operations affecting 50 or more workers. This extends beyond the federal 60-day requirement and applies to both full-time and part-time employees at all New Jersey facilities operated by a single employer.
Perhaps most significantly, the amended law mandates automatic severance pay of one week for each year of service, plus an additional four weeks if proper notice is not provided. Unlike previous versions, employees cannot waive these severance rights without state or court approval, ensuring workers receive the financial cushion they deserve during employment transitions.
2025 By the Numbers: A Comprehensive Analysis
The 2025 WARN notices paint a sobering picture of New Jersey's employment landscape. Based on the data compiled through November 2025, approximately 14,000 workers across the state received notice of impending layoffs or job eliminations.
Industries Most Affected
Pharmaceutical and Biotechnology Sector: This industry experienced the most significant workforce reductions in 2025. Bristol Myers Squibb alone issued multiple WARN notices throughout the year, affecting approximately 1,156 employees across various effective dates at their Lawrence Township facility. The company's restructuring appears to be phased, with layoffs scheduled through March 2026.
Novo Nordisk's Plainsboro facility filed a massive WARN notice affecting 811 employees with a December 2025 effective date, representing one of the single largest layoffs of the year. Novartis contributed another 487 affected workers across two separate filings at their East Hanover location.
Other pharmaceutical companies joining this trend include Organon (93 employees), Mead Johnson and RB Health (190 employees), Rocket Pharmaceuticals (80 employees), Merck (58 employees), Eisai (57 employees), Boehringer Ingelheim (90 employees), Kenvue (69 employees), and Ferring Pharmaceuticals (64 employees).
Retail Sector Collapse: The retail industry continued its painful contraction in 2025. Rite Aid led with the largest single retail notification, affecting 1,122 employees throughout New Jersey on a rolling basis beginning June 4, 2025. This filing reflects the company's ongoing bankruptcy restructuring.
Walmart closed its Hoboken location in two phases, impacting 668 total workers (481 in June and 187 in August). JoAnn Stores eliminated 262 positions across multiple New Jersey counties, Forever 21 cut 59 jobs, At Home closed locations affecting 77 workers, and Claire's Boutiques filed notice for 155 employees across 15 counties.
The restaurant sector also suffered, with GMRI Inc. (operating as Bahama Breeze) closing four New Jersey locations and eliminating 327 positions, Panera cutting 201 jobs in Fairfield, and Iron Hill Brewery in Maple Shade affecting 108 workers.
Financial Services Restructuring: Major financial institutions contributed significantly to the 2025 layoffs. JP Morgan Chase filed four separate WARN notices throughout the year affecting a combined 387 employees, primarily at their Jersey City operations. Citibank eliminated 171 positions across multiple notices, Barclays Services Corporation cut 158 jobs, and UBS reduced its workforce by 108 employees at their Weehawken location.
Other financial institutions reporting layoffs include TD Bank (52 employees), Valley National Bank (59 employees), and OceanFirst Bank (114 employees).
Healthcare Sector: Beyond pharmaceutical manufacturing, healthcare services also experienced significant reductions. The Optum family of companies filed multiple notices affecting 572 employees across various entities. Heights University Hospital in Jersey City eliminated 206 positions, Jefferson Health in Cherry Hill cut 108 jobs, and Summit BHC New Jersey in Bridgeton affected 96 workers.
BioReference Health filed three separate WARN notices throughout the year, cumulatively affecting 257 laboratory workers at their Elmwood Park facility.
Technology and Professional Services: Harrison Sportservice Inc. filed one of the year's largest single notices, affecting 467 employees. Audible in Newark eliminated 67 positions, Amazon's Jersey City facility cut 72 jobs, and various consulting firms including Accenture (71 employees), TEKsystems (58 employees), and Ernst & Young (130 employees) all contributed to the professional services sector contraction.
Geographic Concentration
Lawrence Township emerged as ground zero for pharmaceutical layoffs, hosting Bristol Myers Squibb's major operations and bearing the brunt of that company's extensive restructuring. The concentration of layoffs in this single municipality highlights the regional economic vulnerability when dominant employers undergo major workforce reductions.
Jersey City, home to numerous financial services operations, experienced repeated WARN filings throughout 2025. JP Morgan Chase, Citibank, Organon, Amazon, and several other major employers contributed to job losses in this urban center, affecting both the city's tax base and its service economy.
Plainsboro faced a catastrophic blow with Novo Nordisk's 811-employee layoff, representing a substantial portion of the township's employment base and threatening regional economic stability.
Other significantly affected municipalities include Hoboken (Walmart's 668-employee closure), East Hanover (Novartis with 487 affected workers), Monroe Township (GEODIS Logistics with 334 employees), Newark (multiple employers totaling over 400 affected workers), and Bridgewater (multiple employers including PVH Corp.).
Historical Context and Emerging Trends
Comparing 2025 data with prior years reveals important patterns and the impact of regulatory changes.
The Pre-Amendment Surge
Prior to the April 10, 2023, effective date of New Jersey's amended WARN Act, employers rushed to conduct layoffs. Data shows that nearly 3,800 employees received WARN notices in just January and February 2023, suggesting many companies accelerated planned reductions to avoid the new mandatory severance requirements and extended notice periods.
Post-Amendment Stabilization
From March 2023 through March 2024, approximately 11,300 employees received WARN notices over thirteen months. This represented a normalization after the pre-amendment spike. However, 2024 data indicates about 13,300 workers were affected by layoffs throughout the year, demonstrating that the stricter law did not significantly deter workforce reductions but rather ensured better protection for affected workers.
2025 Continuation
The 2025 data through November shows the state is on track to match or exceed 2024 levels, with approximately 14,000 workers already affected and additional notices likely before year-end. This suggests that New Jersey's employment challenges persist despite economic recovery in other sectors.
Industry-Specific Patterns
The pharmaceutical and biotechnology sector's dominance in 2025 WARN notices represents a shift from previous years, when retail closures (particularly during the pandemic era) drove most mass layoffs. This transformation reflects several factors:
Global pharmaceutical restructuring: Major companies are consolidating operations, moving manufacturing overseas, or eliminating positions due to patent expirations and pipeline changes.
Merger and acquisition activity: The industry has experienced significant consolidation, resulting in redundant positions being eliminated.
Cost optimization: Even profitable pharmaceutical companies are under pressure from investors to improve efficiency, leading to workforce reductions despite strong revenue.
The retail sector's continued struggles, evidenced by Rite Aid's massive bankruptcy-related layoffs and the closure of established brands like JoAnn Stores, reflects the ongoing transformation of consumer shopping habits toward e-commerce and away from traditional brick-and-mortar retail.
Financial services layoffs suggest that automation, digital transformation, and post-pandemic work model adjustments continue to reshape this traditionally stable sector.
Implications for Workers and Communities
The 2025 WARN notices carry significant implications that extend beyond the immediate job losses.
Economic ripple effects: When major employers like Novo Nordisk eliminate 811 positions in a single municipality, the impact cascades through the local economy. Restaurants, retail shops, and service providers that depend on those workers' spending power face reduced revenues. Property values may decline as displaced workers relocate. Municipal tax revenues suffer, potentially affecting public services and schools.
Sector vulnerability: The concentration of layoffs in pharmaceuticals, an industry long considered recession-resistant, should concern policymakers. New Jersey has deliberately cultivated a strong life sciences sector through tax incentives and infrastructure investments. The current wave of pharmaceutical layoffs suggests that even targeted economic development strategies cannot insulate workers from global competitive pressures and corporate restructuring.
Skill mismatch challenges: Many displaced pharmaceutical workers possess highly specialized skills that may not transfer easily to other sectors. Research scientists, regulatory affairs specialists, and manufacturing technicians may struggle to find comparable positions within New Jersey, potentially forcing geographic relocation or career changes.
Severance protection importance: The amended WARN Act's mandatory severance provisions become critical in this context. For a worker with 15 years of tenure at a pharmaceutical company, the automatic 15 weeks of severance pay (plus potentially four additional weeks for inadequate notice) provides crucial financial stability during job search and potential retraining. Without these protections, thousands of New Jersey families would face immediate financial crisis.
Legal Developments and Enforcement
Several class-action lawsuits filed under the amended NJ WARN Act are working their way through the courts, addressing questions about remote workers, statewide aggregation of layoffs, and technical terminations in business-sale contexts. These cases may significantly impact how employers interpret and comply with the law.
The question of whether remote workers who "report to" New Jersey establishments count toward the 50-employee threshold remains particularly important in an era of distributed workforces. Similarly, the lack of an explicit "sale of business" exception in New Jersey's law creates uncertainty when companies change ownership but retain employees.
Looking Forward
As New Jersey approaches the second anniversary of its strengthened WARN Act, the 2025 data suggest several conclusions:
The law works as intended: Despite continuing layoffs, affected workers receive substantially better protection than they would under federal law alone or the previous New Jersey statute. The automatic severance provision, in particular, provides critical financial support during employment transitions.
Economic challenges persist: Stricter notification and severance requirements have not prevented companies from conducting necessary workforce reductions. However, they have ensured that workers bear less of the burden of corporate restructuring decisions.
Industry targeting needed: The pharmaceutical sector's dominant presence in 2025 WARN notices suggests that New Jersey should consider industry-specific workforce development programs to help displaced life sciences workers transition to other opportunities within the state.
Regional economic development: Municipalities that host major employers should develop economic diversification strategies to reduce vulnerability when those anchor employers downsize.
Continued vigilance required: Workers, advocates, and policymakers should monitor WARN notice trends to identify emerging challenges and ensure that the law's protections remain effective as employment practices evolve.
The 14,000 New Jersey workers affected by 2025 WARN notices represent more than statistics. They are individuals and families facing uncertainty, communities experiencing economic disruption, and a state grappling with maintaining a competitive business environment while protecting worker rights. New Jersey's strengthened WARN Act provides a model for balancing these interests, but the ongoing layoffs demonstrate that legislation alone cannot solve complex economic challenges. Sustained attention to workforce development, economic diversification, and support for displaced workers will be essential in the years ahead.
Recommended Citation: Gelman, Jon L., Mass Layoffs Hit New Jersey, Workers' Compensation, 12/02/2025.
Blog: Workers' Compensation
LinkedIn: JonGelman
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© 2025 Jon L Gelman. All rights reserved.
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