Curious to hear what you all think regarding the layoffs that have been happening in some tech companies -- Meta, Twitter, Facebook, etc. Do you think we might start seeing layoffs in the financial services sector?
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It's a good question for sure and I've been thinking about it because I recently made a lateral move and joined a new group, so I'm "low man on the totem pole" and all that.
But, having said that, you just gotta work your ass off. Working scared about losing your job is NO WAY to live your life - it becomes one of those "manifest destiny" things. You gotta go in there every day and just do the best job you can and show them that you're the best one of the team and that you belong there. The day I start running scared is the day my work quality suffers, so I simply don't do that.
They'll cut some unproductive senior bankers and maybe some directors I'd think which is long overdue most places. MD headcount is up 40% from when I joined my current team in early 2019. Likely happens this fall / early winter before bonuses.
On the ground level, the real scare isn't about the layoffs. It's about the new rise in rescinding offers. But most of us here are safely employed, so I'll leave it there.
In finance, we might see some layoffs from all the overbanking in WF or North Western (they deserve it, we all agree. Coming from AMPF, hard F for NWM), but for straight IB/PE/HF etc I don't think so. We need our kinds of people right now to be able to say "you do need to cut these people, because you need that money for these people" so these businesses survive and thrive. Sure there may be some cuts, but that's the facts of life regardless of what kind of point in a cycle we're in.
My firm has a last in, first out policy & I've been here for quite a while with good reviews. Knock on wood, hopefully things stay good
Ok
Came into IB knowing that it is an cyclical industry and layoffs happen at times. So of all the things that stress me about this job, frankly what market forces might dictate the bank to do is not one of them (if this gets so bad that AN/ASOs get laid off, there are larger issues at play).
My thought process is to try my best to learn and work hard without burning out and save 40%+ of net income each year to have a nice nest egg. If I do get laid off, chill at home or a cheaper place for 6m - 1yr and ride out the storm while the market recovers. Beyond that, I can't control much more so no point spending the days freaking out at every doom & gloom article!
how old r u and how much do you make?
Pizz!
he has spoken
DM me your address if you threw Pizz monkey shit.
will probably be nightmare for workers depending on visa I think :/
Lol at the comment saying work hard to avoid layoffs
in the event of layoffs, that won’t matter. Unprofitable segments or business units will be what gets slashed, indiscriminate of ability. If you’re an identified rockstar/future leader then yes, you’ll likely find a safe harbor somewhere. But if that’s not your natural state then busting your ass to reach that level being driven not by internal ambition but because of fear of getting fired will lead you to a miserable, pathetic little life
You’re far better off keeping some coals in the fire, keeping skills somewhat relevant, and having a 6 month emergency fund. 6 months is an eternity if you’re unemployed, so just realize if you lose your job it’s not a huge deal and there will be plenty of landing spots for you. The higher up you go the harder it is to switch, especially if you want similar income, but you will always be ok long run
as the saying goes, man will spend more time worrying about what bad things might happen than time fixing the current problems in their own life. Shit in life happens. Have a financial cushion and don’t lose sleep over it
If you work hard and do your best every day then you would never be an unprofitable segment. If I have to explain that to you then you are simply not working hard enough. Get you act together, son.
Not really. Think about the IB groups that pitches endlessly but doesn’t do very many deals. Or the fund whose analysts constantly study the markets but didn’t see some major event (ex. Covid) happening and had poor returns. Hard work doesn’t imply success.
Wrong. Market and industry dynamics far beyond your control can determine this. It’s different by industry, but I’ve seen it happen plenty of times.
if I have to explain this to you then you likely don’t have much real world experience
lol wow one of the most naive takes i have seen on wso in recent months, even including all the high schoolers that post on this forum. even more hilarious you refer to the poster as "son" as if you are imparting some wisdom. man, i did not know business was that simple where hard work was the only direct correlation with profitability.
yes
Where do you see cuts happening, brofman?
Everyone who works at skybridge and ARK
Undercapitalized banks (banking crises occur when banks cost of capital rises above their yield on debt, and since banks lent an assload during ZIRP, this could be more than benign)
Not sure of the terminology/names of groups but I see potential mayhem coming in leveraged loans and junk bonds, liquidity has dried up as has dealmaking, not good for going into a recession
anyone who's doing capital markets activity for cash flow negative saas companies and other junky tech shit
private credit shops that just started and haven't ran through a crisis before like oaktree
commercial real estate investment teams if inflation stays high
esg
Anyone who listened to Jim rogers when he said go long russia
people who rely on active mortgage securitization markets or anyone in mortgage industry really
in short, I don't think this will be a bad recession for most Americans, they've gotten plenty beat up bc of globalization, but times have been way too good since 2013 or so for me to believe there won't be hell to pay for areas of finance that threw caution to the wind, nothing like 2008 though
I run the FP&A department at my company and just did a reforecast for 2H22. We are slowing down hiring but don't plan any layoffs. If shit hits the fan (we don't anticipate it will) then may have to reassess but it's not looking that way. 2023 might be a different story.
My boss was at his BSchool reunion within the last few months and shared that all his banker buddies (a lot of BB and MM banks) said layoffs were coming over the next 6-8 months unless things turned around materially and that a lot of the PE/HF guys are in a hiring freeze. My firm's hiring actually interestingly enough, must suck to be someone who's bottom bucket and low on the totem pole in times like these though.
My firm's also on a hiring freeze. performance has been in the shitter this yr but that's to be expected when you're high beta. In a good cash position though, so knock on wood haha
If financeabc got laid off and never frequented this site again because he has no more ties to finance, that might solve a good 60% of what's wrong with the world
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