Brokerages Trim Staff
And so it begins! CMA just released an article the JLL, CBRE and Cushman have started cutting staff in their capital markets groups, most of which were analysts and other support staff. Main points below.
- JLL cut 80 - 100 nationwide. A fewer higher-level brokers were let go in NY and Philly but majority were analysts / support.
- CBRE underwent a cost-cutting round mostly in the form of 2-3 month furloughs. No brokers released and unknown # of support staff.
- C&W announced mix of cuts, furloughs and reduced work schedules. No scoop on # impacted.
Has anyone here been impacted? Anyone have any color on offices, teams, geographies or property sectors that have been let go and reasons why? As an analyst at one of these shops in Mid-Atlantic, our office hasn't seen any cuts.
Interesting that CBRE's "flash calls" say everything will be fine by end of the quarter...
I'm at one of the three. Personally haven't had any changes, but I know people that were furloughed/ let go in my office.
What region and were layoffs in particular product group?
I couldn't say without giving up my hand, I try to remain fairly anonymous on here. I am in a major West Coast market though.
EDIT: Also it hasn't been super clear, they really only tell you if it affects you (like your team member or admin)
JLL Nyc cut 30 people from IS/debt teams. Anyone have any insight on who was cut. Thinking its going to be the legacy JLL people rather than the new HFF guys.
Wow, that's a huge cut for one office. That would be the majority of capital markets analysts for most offices / markets for any of the brokerages. I don't think that # could just include the legacy JLL people unless the office was totally bloated.
As side note, the article mentioned that JLL was already planning to cut staff as a result of the merger and that this just expedited the process but not sure I 100% buy that story.
I used to work at JLL and some of those teams are like 8-10 people in some cases. So cutting 30 from the NYC office seems like a lot, but it could have only been 3-4 teams. Still sucks though.
I'm also at one of the three (major European market), have seen few cuts in mostly support positions or non-performing teams. However, I expect cuts to be made in the next few months within the Leasing / Capital Markets / IS teams. Those teams are huge right now and with the foreseen economic slowdown, there won't be enough work for everyone.
At one of the above companies in a non-analyst/ non-broker role. We currently have reduced work schedules / pay for the next 60 days. A few of my friends I have spoken with have undergone the same.
Highly doubt the big name brokers will be let go since most of them are 1099 anyway. Same with some of the leasing guys.
Switching to anonymous here but I'm at a major brokerage firm in a growing secondary market. Our sales and financing groups are unscathed... so far at least. Obviously deal volume has taken a major hit but it hasn't halted entirely. Still seeing some activity and deals trading on both sides of the shop. Heading into COVID we were actually looking to hire but pulled the plug so we were already lean on the support side and hoping that turns out to be a benefit.
If there is another wave I would encourage our principal/lending friends to keep their favorite brokerage shop analysts in mind for roles!
Posting anonymously as well, because same boat as you. An analyst at a major brokerage in a primary market. Was a round of layoffs at the beginning, then another round of furloughs/layoffs in April.
Deal activity that generates revenue is crazy low, but doing lots of free work to help clients assess values, analyze trends, and just do all of our due diligence on every possible scenario under the sun... Everyone just seems to be on pause waiting for some major defaults - no one wants to be the first to take action.
Also posting as anonymous, but I've heard several companies laying off folks. Places like JLL, Arbor, CBRE, Newmark. Both producers and lots of support like underwriters,analysts, things like that. Even some higher up people in the case of CBRE.
I definitely know there is more coming as the deal flow is still just a trickle of what it was in February.
Best of luck to all my JLL brethren
I can add to this. Can confirm Newmark is furloughing significant number of analysts and support staff. I know theyre doing this for MF sales, but don't know about other areas. I havent heard of layoffs happening, but just furloughs at this point. Not sure if that will transpire into layoffs later though.
Don't be fooled by offices / firms with large hospitality teams.
Ugh as someone who graduates in December this is stressing me out. I really want to work at one of the big three post graduation and I been trying my best to network like crazy but all these companies are in a hiring freeze. Anyone have any advice on what an upcoming graduate should do?
I would consider looking into the debt space as it seems to be the busiest from people I’ve talked to. New lending guidelines, mortgage deferrals, and people trying to refinance at low interest rates should keep lenders busy, at least relatively speaking. Continue networking with people in your targeted position and you should be able to make the move once things turn around.
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