Quasi Layoffs - Definitely Random, Still Happening 
(Senior Baboon, 193 
Points) on 6/9/08 at 10:25am
if you're at jpm next year in IBD and thought you were safe - the ax is still swinging. one of my friends just got a call from jpm an hour ago. she said that two out of the five incomings in her group got moved into chase and the other one that got moved had undoubtedly been the top performer/most well liked in the group the previous summer. take it or leave it, but i'm inclined to take it.
new rumor is that leh is outright rescinding offers next week. not surprising given what's going on now though.
(7 votes)
Could you provide some more
by John McClaneCould you provide some more information about JPM's moves? Are people in other divisions getting cut or is it just IBD people getting moved? Also about LEH's rumored cuts (where these rumors are coming from/who may be cut)?
Thanks
Your sample size isn't large
by nystateofmindYour sample size isn't large enough to say the moves are random. I would caution you to jump to that conclusion. There could have been other issues. Banks don't just pick names out of hats. HR has various interests to keep in mind when making these decisions (the group, specific bankers, universities, etc.). There is no drawing out of a hat.
nystateofmind - i understand
by srr636nystateofmind - i understand what you're staying, perhaps i should have titled my post - definitely still happening, possibly random - but just for other people out there - i have it from a pretty decently high authority that the decisions are in fact, random. and thus far, some of the worst analysts from last summer (this is not my perception, it's commonly accepted fact) have strangely been retained, whereas some of the best (ie - people that were asked to present to a large meeting of managing directors at the end of the summer) have been shifted. the rationale i'm hearing, which makes some sense to me, is that jpm is truly planning on honoring these people's offers in a year and that they want to distribute the talent throughout both classes so that the current class isn't great and the bank is stuck inheriting the less stellar analysts next year. take it with a grain of salt though i guess.
JohnMcClane - thus far it seems to be only ibd analysts that are being shifted. my sources at jpm haven't indicated that anyone else is going to be shifted in the upcoming weeks, but it could happen. as far as lehman, two vps in ibd independently told me that we are anticipating cuts next week. don't have a ton more info though. sry
I can confirm that this is
by hockeyguy03I can confirm that this is happenning at JPM and have been told by people in positions to know that such ax-swinging has been done randomly across the incoming IBD class and across all groups.
I know multiple people affected and know that some of them were top performers in their respective groups from Ivy league schools or Ivy-equivalents.
Take it or leave it, but that's the scoop.
Jesus Christ
by Devils AdvocateJesus Christ
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In case people were curious
by HerSerendipityIn case people were curious about the rumor mill:
http://dealbreaker.com/2008/06/layoffs_watch_08_lehman_boa.php
love the way ibo's been
by workingirllove the way ibo's been consistently beating dealbreaker by a day or two on the layoff calls - srr any more info on the lehman stuff since you seemed to call it early?
"I have a head for business and a bod for sin. Is there anything wrong with that?"
can anyone confirm the Lehman figures?
by fishbeancakecan anyone confirm the Lehman figures?
JPM
by KobeFanNo joke. As another poster said, not only affecting IBD but other specialized groups, as well.
Sucks if you think about students who have just graduated college and get calls AFTER school/recruitment is completely over.
have been hearing rumors
by fishbeancakehave been hearing rumors about ML laying off a good number tomorrow as well. can anyone confirm?
at least the folks at JPM are being shifted to other parts of the bank. news on what's happening to incoming analysts at Lehman?
fishbeancake wrote: have
by nystateofmindhave been hearing rumors about ML laying off a good number tomorrow as well. can anyone confirm?
What have you heard? Incoming analysts or those already employed? Laid off or moved to other parts of the bank? Where have you been hearing these rumors? It's going to be hard for anyone to confirm or deny such vague hearsay.
ML
by fishbeancakethis is obviously not the "best" source... but here: http://dealbreaker.com/2008/05/2008_bonus_payouts.php#comments
that's why i was hoping to confirm with others.
those bonus numbers seem to
by indian-bankerthose bonus numbers seem to be inflated. It seems hard for me to imagine that citi, lehman and ML can afford to pay so much after all those write downs. I don't think gs would also pay so much above the bracket. Are these numbers for S&T and banking or just banking? Because I would imagine bonuses in S&T to be more widespread, e.g from 70K to 110K depending on group performance.
indian-banker wrote: those
by nystateofmindthose bonus numbers seem to be inflated. It seems hard for me to imagine that citi, lehman and ML can afford to pay so much after all those write downs. I don't think gs would also pay so much above the bracket. Are these numbers for S&T and banking or just banking? Because I would imagine bonuses in S&T to be more widespread, e.g from 70K to 110K depending on group performance.
Too bad your best guess doesn't hold any weight. Please cut the pure speculation. Bonuses aren't dependent on group performance at the analyst level. Quit posting things you know nothing about.
fishbeancake wrote: this is
by nystateofmindthis is obviously not the "best" source... but here: http://dealbreaker.com/2008/05/2008_bonus_payouts.php#comments
that's why i was hoping to confirm with others.
incoming analysts shouldn't be affected, even if there are more sr level layoffs.
ml and lehman analyst cuts
by jgwentworthdoes anyone have any kind of news/update/rumor on ML and Lehman possibly cutting incoming IBD analysts? while i think both firms have excessively large classes, what would be the upside of cutting the class in half... maybe $10 million in savings -- but then net of severence, probably less than that...
other than not wanting people sitting around making paper clip toys, what's the rationale for outright cutting first year IBD analysts at this point? might as well put them to work somehow.
well, i wanted to see if i could confirm this as well....
by fishbeancakeincoming analysts shouldn't be affected, even if there are more sr level layoffs.
http://dealbreaker.com/2008/06/layoffs_watch_08_lehman_boa.php
Layoffs Watch '08: Lehman, BoA
Posted by Bess Levin, Jun 09, 2008, 9:15am
We're told that Lehman Brothers will begin trimming the incoming analyst class tomorrow. Bank of America is also supposedly getting in on the pruning action, with at least a handful of employees* involuntarily taking off early today. One guy was told, rather ominously, by the head of his group, to "cancel Tuesday's meetings." We're just going to assume there's some sort of surprise involving Angelo Mozilo and a hot air balloon ride over the city which necessitated the cleared schedule. Who's with us?
I don't think incoming
by HerSerendipityI don't think incoming classes usually get severance. They will probably let you keep the 10k relocation bonuses and that's it. Incoming analysts haven't done any work to merit severance.
I was referring to ML. No
by nystateofmindI was referring to ML. No idea about LEH or BofA.
are lehman analysts getting the axe?
by jgwentworthany truth to the dealbreaker rumors? they say "we are hearing." anyone else hearing anything?
Oh so wrong...
by cphbravo96Jesus Christ
Dude, there is no way he is getting axed...no way!
"The trouble with our liberal friends is not that they're ignorant, it's just that they know so much that isn't so."
- Ronald Reagan
bonus numbers could be off -
by buysideguybonus numbers could be off - id take that spreadsheet that db shows with many grains of salt, esp considering the topsy turvy environment we are in. Previously it was fairly easy to tell where the range of numbers would fall (2005-2007) but i doubt anyone really has any idea.