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?
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They are submitting the list
any analysts on the list?
yes know for sure analysts also on the list. heard will be long list but need more insights from more senior up
Believe only An2 will be impacted.
What’s the latest here?
Why would banks lay off ANL2 (the ones with experience)? Doesn’t make much sense lol
No role is safe when an IB starts trimming
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.
Guys, let’s please be a bit more thoughtful while posting. Just throwing around random assumptions is simply ridiculous.
Found the MS HR rep
No man. I just hate vague statements that don’t add real color.
If GS had a big layoff, MS will too lol
more rumors on the floor. Will be a bloodbath across levels
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.
What’s the expected timing?
My friend said that it will be a trim of 10% across all groups, mainly focus on recently promoted directors, VPs and associates. He said analyst should be ok unless they are outstandingly bad.
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.
Not sure how MS does it, but presumably newly promoted are a more valuable cut because they have less deferred comp that will need to be paid out.
APAC - heard they've already submitted the list of people to be laid off
any layoff outside of IB? other front office roles?
Obviously dude. It’s bank wide trimming for pretty much every firm
Strange
Know some teams simply didn’t fill in seats when ppl left this year. Are those teams also going to be forced to cut?
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
RIP NY tech?
any one know when we will start to lay off?
top sector coverage group. promotion year. Worried to death
Hoping the FIG candy associate is on the list
iykyk
hahahah
please enlighten me
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
Move on to what?
Any update? Feel like morale has tensed up.
It's so bizarre watching it happen in real time from someone who has been through it
Any updates here?
Following
Quite curious myself. Following.
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 issue..plus 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”…
Why do rounds now and then again in December? We always told our clients to bite the bullet and do it all at once.
Heard that GS senior mgmt has basically confirmed another round of layoffs in December if no improvements.
I definitely agree there will be another round of cuts in December / January right before bonuses at BBs
Heard it is this Tuesday. Any intel?
Heard from my MD layoffs will happen just after Thanksgiving. HR was walking around the floor all day about a week ago. An1’s are safe.
Heard HK had layoffs the other day
Heard second-hand ~30 laid off yesterday, from 2nd year analysts and up.
full list is 50 ppl according to HH
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
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.
any idea on the perception of individuals who successfully got off a PIP?
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..
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.
Wtf is a PIP
If you include the m, WSO's new filter blocks it so bankers have adapted and adjusted their vernacular accordingly.
Performance improvement plan
The last part is true, but you can easily be part of RIFs due to politics, alignment to the wrong sector / MD, tenure, or diversity goals. Not trying to instill any fear in those anxious about layoffs, but I’ve been around long enough to see people get good performance reviews, then laid off when the market sours…
Brace for impact. Tuesday. Layoffs. Good luck to all.
Is it definitely Tuesday?
Yes - NY HQ signs off on Monday, then pull trigger on Tuesday (first in APAC, then EMEA, then Americas). This is generally the time line for all major US BBs
Any updates??
edit: layoffs now complete at least for london tech. fairly minor
They started today at 8:15 AM with myself and one other person I know of. She was the vice president. I was a grunt.
London IBD - 3 EDs 2 Associates (1 per each team)
London ECM - 3 Associates
fuck killing associates? leave us alone 😩
It was Associates 2 and above (those on January bonus cycle), no Assoc 0 or Assoc 1
my year end review coming up - i suppose thats when they spill the beans
CNBC reporting 2% across the firm
Can confirm research cut. Not super helpful info tho haha
Heard there were cuts in menlo tech and consumer LA
No cuts in GCM to my knowledge, 1 cut in NY tech IBD, no cuts in S&T as far as I know, couple cuts in research at the VP level
Any update / insider views on MS upcoming layoffs? Seems happening this month and / or next per BBG and sizeable..
Source?
..Bloomberg..
https://www.bloomberg.com/news/articles/2023-05-01/morgan-stanley-plans-3-000-more-job-cuts-amid-dealmaking-slump
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