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Do firms layoff current employees before cutting offers to new analysts? Has anyone heard of JPM rescinding offers to new analysts?
new analysts as in first year or as in kids that just signed?
They might rescind some offers from some kids who will graduate in the spring.
I do not know how that process would go however - if a bank keeps a waitlist, and a few of those kids get in - I would imagine they would be the first to go.
Also, first year analysts already in the game would have to be performing pretty poorly/not getting along with their peers/superiors to get fired I believe. But it does happen.
Bottom line is anyone who tells you layoffs don't affect analysts is lying to you. Granted it's much easier for non-performing MDs and VPs to get laid off to reduce expense, and associates aka glorified editors/go-betweens, to get the boot - it just doesn't make sense to have 2x the number of analysts covering the MDs. Most rain-making MDs can't take 2x the meetings they already do, you know?
I should have also noted - analysts also tend to avoid the layoffs more than their peers because of the program itself. You go to a bank. You work 2-3 years, you leave (while maybe 5-10% get offers for associate). The bank can fix the disproportionate numbers by cutting incoming classes and paying out sh*tty bottom bucket bonuses, basically saying "you work here for $15 an hour, you can stay if you want".
JP Morgan Layoffs Begin Anew (Originally Posted: 12/02/2008)
Not counting all those former WaMu wannabe cuts announced yesterday, JP Morgan is swinging the axe again big time starting today.
http://clusterstock.alleyinsider.com/2008/12/jp-morgan-chase-jpm-handin…
Things must be difficult in the Jamie Dimon camp. After they took on Bear Stearns and now WaMu, it must be tough hearing the phrase 'redundancy' all the time.
Does this surprise anyone? Layoffs are happening everywhere across the street, while JP has fared better than most (if not all), they certainly haven't been immune to this mess. Sadly, layoffs are just the nature of the beast.
JPM Layoffs (Originally Posted: 05/22/2008)
Anyone in a position to comment on the JPM layoffs? 4K across IBD? incoming FT classes are only 180....
DealBreaker has this:
http://dealbreaker.com/2008/05/jpmorgan_viva_los_layoffs.php
and this:
http://dealbreaker.com/2008/05/layoffs_08_bloodbath_in_jp_mor.php
before anyone complains about a gossip thread - this isn't idle gossip and btw the so called "false rumors" on here are usually correct and far more timely than anywhere else i've seen on the web.
I read this in NYT or WSJ a few days ago, so it is substantiated.
I dont think they explicitly said it was 4k exclusively from IBD. It said something to the effect of 4k JPM layoff, 6k BSC being taken on... net of +2K.
I happen to personally know a JPM Global Head who has been pushed down a notch and put under a BSC guy. Should be interesting to see how these types of indirect replacements will effect the firm.
Also recently went to a career networking event SWARMING with BSC guys. The job mkt has gotten SO much tighter post-BSC.
Had the following txt:
Report from JPM. Source My roommate in IBD Transportation:
50% of 1st year class was cut 50% of entire IBD was cut Severance= 2.5mo salary with full bonus to be given in mid July (whatever that may be) Opportunity to start over?
thought the earlier post was bullshit - but as far as i can tell it's not. idk if it's really 50% across the entire division, but it's pretty hefty across allll IBD groups as far as i've heard, not just SLF.
50% sounds extreme. My good friend in a JPM satellite office said 25%.
i think that the cuts were so extreme in some groups, ie structured leverage finance etc, that overall, the cuts amt to 50% of the class. it may be more like 25% in some of the groups that are doing well, if that makes sense. 16/18 slf guys are gone.
Do these cuts extend to London as well? I've been told it's harder to fire people there.
Dealbreaker 'confirmed' what was said above about 50% of 1st years and 50% across IBD. Take from it what you will.
Confirmed. The axe swung swung hard yesterday. Heard from a MD in my group last night. Also the people I'm working with on a deal over there are not picking up there phones today.
Friend in DCM said they only lost 5/40. SLF got whacked, though.
what does this mean for incoming analysts?
Does the 50% cut in the 1st year IBD class mentioned in Dealbreaker also include all the analysts that were cut at Bear?
If all of the 50% were only original-JPM analysts, then the job market just got that much tighter...
Not sure how accurate a 50% axe swing is... everyone I know from JPM is still intact, that includes 3 ppl from SLF.
I do however know 2 people who recently got axed; one from Citi structured prod, and 1 from DB coverage.
http://www.cnbc.com/id/24786954
says maybe 20% across the board at 50% in M&A
what does this mean for incoming analysts?
its going to be a nervous time for incoming analysts at JPM. I doubt they will rescind your offers.
They probably cut their analysts (including bear's) because they know that you guys are coming in.
In all honesty, its too early to tell. Just keep in mind that Bear's analysts started when the BSAM hedge funds blew and people were speculating that Wachovia was going to buy the bank.
1 year later..JPM owns them. Also, Goldman put half of its S&T analysts into operations. Since JPM has a new prime brokerage arm, even though it is filled with Bear guys, it may divert some incoming analysts to that area..its possible.
But I doubt that any of the incoming analysts should be worried about being laid off / fired in the 1st six months. And hopefully the market conditions can do a 180 so you guys can go on speculating and dreaming about making a million dollars at a hedge fund or pe shop after your two years..
i heard the entire Syndicated & Leveraged Finance group was cut in chicago.
thoughts as to whether people will get shoved into other areas of the firm as opposed to being laid off, a la goldman shoving a bunch fo their s&t kids into ops?
srr's post seems so sadly prophetic now...
JPM SLF - So Much For "Exit Opps" (Originally Posted: 09/26/2007)
Looks like some new analysts are gettting canned. Ouch.
where is your source... where did you get that from? No one is getting canned
There will definitely be layoffs in JPM SLF; numbers will be decided within a few weeks was the message from senior management. Don't know about the 1st years, but some 3rd year analysts this morning were told to start looking for other opportunities.
LOL check dealbreaker.com
what happened to that brilliant theory that "analysts are the cheapest to retain, they'll be the LAST to go!"
notice the article mentions nothing of VPs or associates.
I don't think it is very funny. I know a person in that group that is an analyst. How would you like it if you lost your job? I bet you're still in college...
they want to leave will just be given bonuses 25-50% of expectation and will leave on their own
thats not laying them off. your theory is still completely stupid.
I feel for these guys... Even if the rumors are false, it's still got to be stressful.
In response to the frequently heard theory about analysts being the cheapest and therefore the last to go -- I think JPM hired a truly Massive analyst class this year and it would stand to reason that if their most booming IBD practice (SLF) is practically at a standstill, that they may just have too many bodies.
they definitely over hired this year. I also heard their summer class was way too big, but not because they gave out too many offers. This year they had way more accepts than they had anticipated so the class is huge.
ladyjam, do you work at JPM/have a credible source for your info?
Groups heads called meeting monday afternoon and said that the decision has already been made, just a matter of finalizing how many and who. Expect that all levels will be affected. Folks are on pins and needles.
Jesus Christ...so it begins...
Fresh out of college...think you have a sweet gig...and this happens...jeez
I have heard some several people on the street that there will be large cuts - mostly in the lev. finance, ABS space, etc. This should come as no surprise.
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