Worried about layoffs/offer being rescinded
In August I start working in a sales/relationship management analyst role for a large firm’s new grad program and the recent news about layoffs https://finance.yahoo.com/news/wall-street-is-starting-to-trim-jobs-as-economic-uncertainties-mount-124429335.html has me worried. Is it reasonable to worry about my offer getting rescinded or my position getting cut within the first few months of starting? Or is it more likely the layoffs would be slightly higher up instead of the newest analysts/they will just take fewer people when filling next year’s class instead of laying off mine
Based on the most helpful WSO content, your concerns are valid but should be put into perspective. Layoffs in large firms during economic uncertainty often follow a tiered approach:
New Analysts Are Generally Safer Initially: Firms typically invest significant resources in training new analysts, and they are less likely to rescind offers or cut positions for those just starting. However, this is not a guarantee, as extreme scenarios (e.g., severe economic downturns) could lead to layoffs even at the junior level.
Higher Risk for Mid-Level Employees: Layoffs often target mid-level employees (e.g., VPs or Directors) who are more expensive and may not be generating sufficient revenue. This aligns with insights from WSO threads, where mid-level staff are often the first to be impacted.
Class Size Adjustments: Instead of cutting current analysts, firms may reduce the size of next year’s incoming class or delay hiring to manage costs. This strategy allows them to maintain their current workforce while preparing for future uncertainties.
Economic Conditions and Projections: Firms base their decisions on revenue projections and market conditions. If the economic outlook worsens significantly, layoffs could extend to junior levels, but this is typically a last resort.
To mitigate your concerns: - Stay Informed: Keep an eye on your firm’s financial health and any internal communications about hiring or layoffs. - Network Internally: Build relationships within your team and demonstrate your value early on. - Have a Backup Plan: While it’s unlikely your offer will be rescinded, having a contingency plan (e.g., networking or exploring lateral opportunities) can provide peace of mind.
Remember, while the risk exists, it’s not a certainty, and many firms prioritize retaining their newest talent.
Sources: https://www.wallstreetoasis.com/forum/investment-banking/lay-offs-soon?customgpt=1, Recent Grads - Do we still have jobs??, Still want the job? Are you prepared?, Just got laid off, What are the key lessons from GS / MS layoffs?
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