Banks year end layoffs?
Any update on this front? Typically banks will do year end layoffs but not sure if anyone has heard anything - is it mostly more senior folks or also juniors? (Ie. associates or analysts)?
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These "annual layoffs" are not done by every bank and are usually for underperformers - can be across the levels but typically more focus on VP and above.
Larger-scale layoffs (like what Citi is doing) are where juniors or mid/upper performers sometimes get hit just because they need to reduce headcount quickly
bump
Based on the most helpful WSO content, it seems that there's no definitive answer to whether banks will be doing year-end layoffs. The situation can vary greatly depending on the bank and the current economic climate. In the past, there have been instances where both junior and senior level employees were affected. However, it's also been noted that the underlying economy is strong and banks are not the genesis of the problem, suggesting that layoffs may not be imminent.
In a previous WSO thread, it was mentioned that some banks may choose to place individuals on Performance Improvement Plans (PIPs) or pay zero bonuses to encourage people to quit, rather than directly laying them off. This could potentially affect all levels of employees.
In 2020, it was observed that some banks, like Wells Fargo, didn't have any layoffs for associates or analysts, but rather let go of some underperforming directors.
However, these are all past observations and the current situation could be different. It's always best to stay informed and prepared. Keep your ears open for any news or updates from your bank.
Sources: List of banks who laid off workers/had low return offer rates in 2020, https://www.wallstreetoasis.com/forum/investment-banking/lay-offs-soon?customgpt=1, JPM Layoffs, Layoffs 2020
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Expecting Jan to be a big layoff month across every bank. Need to RIF the bottom 3-5% to save on bonus pool for the performers
Why not cut people before bonus season (for associates which is first week of Jan) rather than after? Would second year analysts be affected?
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