Haven’t seen a post about this recent article, but should juniors at CS start worrying? Sounds like things are only going to get worse before they get better.
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I signed my contract at CS today, while located in Switzerland I feel rather off about CS situation right now... Depending on how bad things could get, it's (a fair) half of the banking industry wiped out here, I can't imagine the meltdown.
Other than that, from what I imagine APAC may be the first region to suffer. Then again last week they talked about selling their AM business, now we're hearing that IB is not doing well... Getting ready for the ride!
Just moved across the country to start my job next month and fully burned through my $10k signing bonus to do it, so I’m fully strapped-in… hoping like you that this’ll have a greater impact outside of the US.
you got your signon already?
Why would APAC be first to suffer?
Saw an announcement the other day that Chinese owned IBs were cutting headcount by a third, overall market trend over there.
You can take comfort in the fact that analysts are probably the last to be cut, but if they are then it's usually last in first out so..
That was a weird middle ground of comfort, but I guess I’ll take it.
Cannot imagine that juniors will be cut first. It‘s usually bad performing Ds and MDs as they are as expensive as 5+ analysts. However, bonuses might suck for the next 1-2 years.
Agree on the bonuses. However they don't have many Directors s and MDs left to lose. They lost about 70 MDs (90% of their top performers) when the share price tanked while other banks share prices went up 20% because of Greensill and Archegos. They replaced those guys with about 55 new MDs who all came over on three year contracts with guarantees. Similar proportion with slightly less hires at the director level. You cant lay these people off without eating the guarantees. The rock stars they convinced to stay also got big guarantees in their contracts to make them whole after the deferred comp hit the gutter too. Cant lay them off.
following
Bump
2nd year ASO at CS NY. Our APAC offices already started laying off VPs and Associates - People who I've been working with on cross-border collab deals are disappearing from Skype and WGL. Although we recently promoted a bunch of analysts to associates and hired a ton of new MDs, I feel we're super close to seeing massive layoffs. Not to mention bonus will be shit for years... Fingers crossed....
Mostly HK or SG?
Already cut more than 24 MDs in APAC IBCM and rumor has it, those in NA groups have already started getting their notices. Not sure if it's a CS thing but the bank has very very few Ds and VPs to begin with, so who's next in line..?
https://www.bloomberg.com/news/articles/2022-07-04/credit-suisse-cuts-d…
FWIW, I work in Credit/SP and our IT/developer teams are getting hit hard at the moment (which is the dumbest place to cut, IMO, but whatever), but that’s all I’ve heard about.
Not really, they are a cost center and produce no revenue. They will go first, so will ER.
I am aware of how cost-cutting 101 works, I’m just saying it’s short-sighted and stupid.
Credit Suisse is losing money because it’s a badly run bank, not because its IT budget is too large.
I work in an area where we take on a considerable amount of risk. The systems that we have to manage that risk (both operational and market/credit) are a joke as it is because our IT/development teams are understaffed and under-resourced.
A good way to fuck around and lose a billion dollars is to have a bunch of manual processes that some knucklehead Ops analyst in Raleigh has to remember to do and do correctly because you’ve woefully underinvested in the technology necessary to run a bank correctly.
Are incoming analysts at risk
Likely not no, but I will be re-recruiting. From what I’ve heard it doesn’t sound good, would expect to be earning below street at the bare minimum. If you have no offers I’d say it’s still better than nothing though.
I'd be careful using CS as a benchmark for other banks atm.. they weren't even able to be profitable all quarters of 2021 which is impressively bad - also must be pretty much the only bank in the world that managed that?
Their problems have been huge for a long time and when markets get shaky they have no resilience to withstand what so ever. Other banks are being hit as well but they should be in a completely other situation handling this.
By no means this is a market-wide event. CS layoffs are due to all the scandals over the past 3-5 years, not because market is shit in 2022. Other banks will be fine
this didn't age well
Will there be layoffs on Monday?
Why do you think so?
Definitely rumblings of layoffs next week
Confirmed. Starting Monday morning
Do you have any idea which teams and levels will be hit?
Bump
Confirmed some happening today
Heard nothing in London. Which teams have been affected?
Can confirm that a first year was let go
Yes several in my group were fired today. Heard some other teams have first year and administrators being laid off as well.
Ouch, why they'd fire first years is beyond me, literally the worst for your reputation and least expensive
Not to be that guy, but doesn't seem like key decision makers for giving IB mandates are monitoring breakdowns of which analyst level was let go
Yeah it's absolutely ridiculous they're letting go of first years. What a soulless time
bump
Where are layoffs? LA/NYC/SF?
Global, every office
Someone heard anything on London?
Can confirm that first years were let go
Anyone know which groups in SF were hit?
bump, anyone on west coast touched?
How many first years were let go?
Analysts from which groups were laid off?
ECM
ECM
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