A nightmare on Wall Street: more layoffs to come
Sorry guys, I hate to be the bearer of bad news but it seems that the job cuts Eddie talked about a few weeks ago won’t be ending anytime soon. In fact, things might get downright ugly.
With rising costs and diminishing earnings, thousands of jobs are now at risk on Wall Street as most of the major banks are looking for ways to trim the fat off their expenses.
UBS and Credit Suisse have already confirmed to cut around 6000 jobs between them, a staggering 5000 for UBS alone, but what I think we should be really looking at are MS and GS:
Charlie GasparinoThe firm (MS) is “running layoff scenarios into several thousand folks,” said one person with direct knowledge of the matter. This possible new round of job cuts would go well beyond the pruning of low-producing brokers the firm has already announced.
MS has confirmed they’ll be slashing 300 financial advisors off their brokerage unit, but sources have told Gasparino that if things don’t pick up soon, the layoffs could hit the trading floor and might even threaten the investment banking department as well.
GS meanwhile has already laid off more than MS is planning to, but given their announced savings plan to shave $1 Billion off expenses within this year, things at the vaunted firm could get really brutal. Compare it to the UBS plan to axe 5000 people to save $1.2 Billion, it’s probably safe to say that over a thousand people might not be doing God’s work come 2012.
And it's not just the BB's either:
reuters(Analysts) warned "material staff cuts" across second-tier investment banks struggling with high fixed costs.
Nothing much to add here really, other than I wish all you monkeys the best of luck with the Ax man – or in trying to shift to the buyside next year.
Have a good one WSO.
i really hope this doesn't take shape in the form of less SA offers handed out...
I wonder how this is gong affect, FT recruiting? Do you think UBS/CS will recruit for IB come F.T? I have a connect whos going push my resume for an interview, but it seems unlikely now :(
We'll find out more once UBS publishes Q2 results (end of July, too lazy to look up the exact date). As I understand it, these layoffs are intended to cut costs and not so much the result of poor dealflow. Thus, I think IBD will be less affected (cutting costs = reducing and consolidating back office staff, firing sales and trading teams as well as private bankers that don't generate enough fees) but of course, some groups that don't bring enough money may have to reduce their headcount which would ultimately also affect FT recruiting.
Just my 2 cents
I hope desks aren't reassessing their needs for ft now.
well, JPM seems to be doing well
Well i'm be at uni for another 2 years so hopefully things will be better then. But I wish everyone in the industry good luck.
Don't think this won't affect you- you are likely to be competing with not only top candidates from your year, but probably the guys who didn't get in the year before, and guys with 1-3 years who were laid off, which there will be swarms of.
These are deep cuts being talked about.
yeehaw! drop in NYC real estate prices. scoopscoop.
I agree if landlords would lower rent, it would trickle down where goods will decrease as well. There is a dry cleaner by my brothers office where the women had to close it down because the landlord increased her rent where she can't pay for it.. NYC needs rent control not only on older buildings but newer ones as well.
the rent is just too damn high
You uneducated commie...rent control...are you serious?!?!?!?!?
What the fuck are YOU talking about???
http://video.cnbc.com/gallery/?video=2053196864
no rent control is whack. disagreeeeeeeeeeeeee
rent control is un-american. plus it keeps the riff raff in -> higher crime rate.
OH YOU SHO WACIST
The rent is too damn high!
DEY TEWK ERR JERBS
when the wealthy dont exist to buy, plus the only items that have been selling are all uber high end apartments and not the 'typical' NYC apartment
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