MS Layoff?

Rumors swirling across the office that we (MS) are going to announce a list of layoff names soon. Apparently as early as next week.

Anyone has more details or insights on this?

Comments (60)

  • Associate 2 in IB - Cov
Sep 25, 2022 - 3:07am

Believe only An2 will be impacted.

Most Helpful
  • Associate 2 in IB-M&A
Sep 26, 2022 - 1:41pm

That's true but logically speaking: An2 are the 2nd cheapest source of labor and are vastly more productive than An1 and As0 (and in most cases, As1).

Plus, An2 is subject to a 2 year contract. You only need to pay them for 8 more months if you don't lay them off. If, for example, MS was thinking of laying off 30 An2s, why not just lay off 15 As1s (also means you save on bonuses due in Q1 2023), have more bodies able to do more work and hire laterals to replace the laid off As1s when the An2s leave and business picks up?

At the end of the day, MS isn't going to have that much trouble finding willing laterals, especially if street wide bonuses are down, with people generally having a "grass is greener" attitude to moving banks after a shitty bonus year.

  • Associate 2 in IB-M&A
Sep 26, 2022 - 10:22am

more rumors on the floor. Will be a bloodbath across levels

  • Associate 2 in IB - Cov
Sep 26, 2022 - 10:33am

OP here, heard we are cutting the same % wise to GS - so looking at ~10% reduction across IBD and GCM - and no team will be spared.

Sep 26, 2022 - 12:40pm
oasis1992, what's your opinion? Comment below:

Understand non-producing VPs/D and associate are usually targets but why would they focus on recently promoted ones? Presumably that's the pool that is viewed as mid- or top-bucket. I would think directors or VPs who have been in seats for a long time and not shown much promise would be shown the door first. 

Sep 26, 2022 - 2:41pm
roger_2, what's your opinion? Comment below:

Know some teams simply didn't fill in seats when ppl left this year. Are those teams also going to be forced to cut?

  • VP in IB - Cov
Sep 26, 2022 - 3:17pm

Similarly hearing 10% cuts across IBD and GCM, expect cuts to skew towards groups facing continued headwinds. Our NY Tech groups is ECM heavy vs. MP, which is more M&A

  • VP in IB-M&A
Sep 27, 2022 - 2:58pm

I would be more than happy to not only get paid a severance, but also keep all unvested stock and move on from this god forsaken job

View this as a positive, as we all should

Sep 27, 2022 - 4:16pm
roger_2, what's your opinion? Comment below:

Any update? Feel like morale has tensed up.

  • Managing Director in IB - Cov
Sep 27, 2022 - 11:33pm

BB's will see outsized pain this cycle. Management, like that of any other major public corporation, will manage to meet public targets. Jamie D has a big problem, he needs to build an additional $200bn in capital. At a ~12% CET1 he needs to build $20bn+ in equity (suspended buybacks over the summer), coupled with a 15% ROE target and he needs to find 3bn in net income. Bank of America and Citi have the same tack on SEC fines (which will be allocated to the Institutional Business). For those wondering, the blood will be shed in the first half of December. They will use the bonuses they've been accruing all year to fund severance. 2023 Budgets will get marked up with comments like "+250bps improvement to '23 PBT margin due to Dec. action"…

  • Analyst 1 in IB - Gen
Nov 22, 2022 - 9:11pm

Heard second-hand ~30 laid off yesterday, from 2nd year analysts and up.

Nov 23, 2022 - 1:17am
Jamie_Diamond, what's your opinion? Comment below:

I just spent $10K today on random shit and vacuumed my apartment 3 times over

now i know how i respond to nervousness of being laid off

it aint good it aint good at all

What concert costs 45 cents? 50 Cent feat. Nickelback.

  • 2
Nov 23, 2022 - 9:58am
TheBuellerBanker, what's your opinion? Comment below:

The RIFs primarily affect those who are low performers and those who were on the cusp in the past (PIP'd guys) but were kept on due to needing headcount to support dealflow. If you're a strong performer, you really don't have a lot of reason to worry.

  • 1
  • Prospect in IB - Gen
Nov 23, 2022 - 10:29am

any idea on the perception of individuals who successfully got off a PIP?

Nov 23, 2022 - 10:42am
TheBuellerBanker, what's your opinion? Comment below:

Will be based on your review files and general perception from MDs/Group Heads reputation-wise. If you were on a PIP and then got off, that likely makes you pretty strong in the team's eyes as a PIP is generally a death sentence and is a soft way of moving you off the platform. But bouncing back from that is really powerful so I'd think you'd be viewed as a strong performer. Obviously the other train of thought is that you were PIP'd and are by default not the strongest performer, no matter your efforts to get off so it's definitely a consideration..

  • 2
Nov 24, 2022 - 12:23pm
pavementroad, what's your opinion? Comment below:

I love those who got off PIP. Shows a lot of resilience and heart and a real motivated person who wants to get better. A lot of those who get on PIP are those who just dont care or are actually incapable. Someone who gets off PIP shows me that they were just a late bloomer and I will always take someone who shows real heart for the job over someone who just bloomed early.

Nov 23, 2022 - 12:39pm
reformed, what's your opinion? Comment below:

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Odio ipsa repellat vel tempora et. Alias quia consequatur incidunt id ducimus eveniet. Eius est sit explicabo autem non. Et porro non ut molestiae. Exercitationem voluptate nobis inventore. Necessitatibus non iste deleniti nobis quia sed officiis. Et enim enim impedit laudantium cupiditate tempore tempore maiores.

Ea repudiandae enim magni deserunt quaerat modi hic. Consequatur ea perspiciatis fugiat repellat incidunt sed adipisci. Amet tempora at quia veritatis. Dolor autem deleniti sunt ea. Adipisci possimus asperiores velit aliquid. Et eum voluptas aut culpa voluptatem harum.

Nov 23, 2022 - 1:01pm
NollieLatte, what's your opinion? Comment below:

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Quam quae inventore vel vero optio nulla omnis. Facere dignissimos sed minima aut illo. Porro sint sequi praesentium molestiae tempora quia. Explicabo praesentium iste vero est.

Eligendi non minima libero et a in. Aliquam asperiores minus sed minima quis.

  • VP in IB - Cov
Nov 24, 2022 - 3:02pm

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