Does anyone know numbers and split by geography as well as expected level?
Confirmed from flat mate who used to work there that significant cuts are occurring.
Anyone any other updates on other MMs e.g. Lincoln, Stifel, Baird, HW, Stephens?
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Lincoln has mentioned that they are hoping to expand during this time, rather than make cuts. They made a similar move in 08 and it helped them gain market share after the recession.
I’ve heard Houlihan is looking to do the same.
Can also confirm this from a source who will be there this summer. Said they had a town hall with the North Am CEO and HR last Friday - overall seemed like they’re staying opportunistic with a solid plan to execute.
This is correct.
Lincoln or Houlihan?
I've also heard HL is actively hiring.
HL is actively hiring for RX, definitely not for M&A. They can probably avoid layoffs based on the RX revenue and moving some M&A people over to the RX side side of things, but they are a pretty unique MM bank with their great RX, most other MM shops only do M&A.
I have some friends that work at both Lincoln and HL. Both spots are looking to expand right now and are actively pursuing new MDs, but i'd say Lincoln is being a bit more aggressive about it.
Honestly, middle market M&A-focused shops are facing a bunch of challenges right now but HL has a legit restructuring group and Lincoln has a few products groups (VOG, restructuring, etc.) that help balance out the impact on M&A activity.
I've heard that nearly all MM M&A shops are struggling to some degree and deal volume will be down substantially this year. Not to say that some deals aren't getting done, but it's been hard out there.
Can anyone comment on RBC?
Not letting me reply to the comment above but I have heard from a close friend who works at RBC that they are committed to not laying people off for the rest of 2020.
[January 2, 2021](
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Entourage is timeless
Ari Gold is my spirit guide.
Oh, and I think he was meant to be with Dana Gordon.
We really think other middle market firms will be looking to expand with similar models to Blair? C'mon.
Confirmed zero COVID layoff at RBC this year as per senior management. That said, I would really try to make sure I'm at mid bucket or above at whichever bank I am to stay safe.
Thread about WB layoffs gets turned into a RBC thread. Nice.
RBC a BB?
I can't reply to anyone anymore but I must say that some banks will rise and otehrs will cut back. I wonder how Baird is doing as Blair and Baird are competors.
"Competors" really? Pls fix
If you said this to me in the office as an intern, I would say this to everyone in the office whenever I get a chance such that everyone would know and you wouldn't get an offer.
Act at least somewhat professional pls. This joke is getting a little too old, intern.
They all run very similar models. If one falters, the others will surely falter too.
I can't reply to anyone anymore but couldn't other banks just take analysts from Blair if they are cutting? I hope some deals are still going right now...
My dude, Blair is one of best in the middle market. If they're truly struggling, they're not alone.
I can't reply to anyone anymore but ok, you're right I see your point.
"Significantly" being less than 10% of IB headcount when firm typically counsels out 3-5% at this time due to performance issues, as is the case with most banks.
Have heard closer to double this figure; is this confirmed?
Posted this in another thread but heard similar. Cuts across the board at all levels including partner. This is after they apparently cut stub bonuses, pushed interns to virtual and FT to September. Does not sound good
Cut stub to what exactly?
Didn't cut 1st year stub bonuses. They used to pay 3rd year analysts a mid-year advance on their full-year bonuses to incentivize sticking around which has been cut. This was basically to get an extra half year of work out of analysts exiting to PE.
10% isn't that much but still somewhat a lot. WB is a solid top tier IB. If they're getting so crushed, I truly worry about the condition of other banks. Big banks have said they won't fire anyone this year, but seeing as how other banks are doing it, if big banks keep their promise, I would expect 10% of all staff to be laid off on January 1, 2021.
Guys, if you're thinking about leaving IB, now is the time to leave. There is really no point in staying until next bonus because that's going to be $10-20K max for analysts.
$10-20k is more than $0k
Yes, but should you really stay just for such little money? I can make $100K if you give me a year and $75K.
Didn’t they give auto return offers for all interns summer 2020?
Yeah why would they be giving auto returns while also cutting significantly?
To cut the bottom employees and invest in junior talent, which they already hired for internships
There is a 1 year lag between interns with return offers joining and current analysts/employees.
i know blair is very proud of the fact that they expanded headcount during 08 recession (they gloated about this during an interview I had), so seems odd they would cut headcount now? Certainly doesn’t bode well for lower tier MM players like Piper, Cantor, etc because Blair is a leader in the space, are a private partnership (not public so less shareholder pressure), and solid PWM business to keep the lights on. Just means things are going to be really ugly for purely M&A shops
Guys - M&A fees are going to be down ~50% this year. Capital Markets related fees are going to be down ~25-33% this year. BB and MM banks are notorious for over hiring and over firing. And promises like “no covid related firings” are worth literally nothing.
With all that said, yes, there will obviously be significant layoffs this year and places like Blair will obviously be hurt we just won’t know the extent for a few months, at the earliest.
.
Nobody has really said no covid firings, they’ve mostly said none in 2020, because the PR optics of that would be terrible. Which means Jan 2nd is going to be a bloodbath.
January 2nd is a Saturday..
Why not January 1st?
Are analysts included in this headcount reduction. And is it typically bottom bucket analysts only or is everyone at risk?
Analysts get included, but usually far less of then than others. First people to go in a headcount reduction are low performing mid levels. You get your most bang for your buck as VPs / Directors are execution roles (and execution is down ~50%) and they make 4-5x an analyst. Then the non performing seniors (an MD who doesn’t bring in revenue is basically on welfare). Then it gets to the people who actually do the work (I.e Analysts and Associates).
You are retarded if you geniunely believe anyone that says your job is safe and they're committed to not firing anyone
If anyone has additional color it would be much appreciated. Concerned about entry (Analyst/Assoc) roles.
i thought this was a post about Tony Blair getting shredded
Nice
Jersey City ops here you all come.
Yea I find it really weird no layoffs. I guess the optics would be bad. Curious to see how this changes around September, when stimulus wears off and programs such as PPP are totally done.
They still won't lay people off because of their promise. Now it's even worse optics to fire people when they said they wouldn't.
what if the second stimulus is passed? Then, we should be fine.
Yes. Really weird they make promises. Saw BofA clearly state no Covid related layoffs. I wouldn't hold your breath on the second stimulus. Senate is not going to pass anything unless its a much more scaled down stimulus, but nothing near the first round. The Repubs dont want it. 2021 will be interesting. Everyone talking about a V shaped recovery at this point.
if you were theoretically an incoming FT analyst, would you be worried? we got pushed back a few months which isn’t a big deal, but this is obviously more concerning.
I’m an associate at WB. No need to worry if you’re an incoming analyst; the recent cuts mainly affected underperformers, largely falling on MBA associates and WB has just eliminated the MBA associate program due to uneven performance and retention over the past couple of years. The focus will now be on A-A promotes. The pushback in start date is due to uncertainty around office reopening as training for first years really requires in person interaction.
Maybe a dumb question, but does that rule out FT MBA recruiting for this cycle (and all future cycles) as well?
Blair is not "cutting". Parting ways with underperformers. Happens every year, not just axing folks. Don't live life in the bottom 5%.
-
What happened to the European office?
Nah bud they are 'cutting' lol. no one on the street makes heads roll like that annually just to swab the decks at least not in my 6 years - don't mislead the younger guys on here. cuts virus related and haphazard from what I heard (chi, dunno about satellites don't matter theyre not especially relevant for regional MM IB). Buddy's still there as a-a and said guys on his team who got let go were far from bottom bucket and were plugged (politically) in otherwise.yeah nobody should be scrapping along in 5% or whatever but this smells real different
few banks planning to do following based on call today
associate and VP cuts if situation doesnt improve by july end and dealmaking doesnt pick up
internationals waiting on H1b or opt to be slashed with joining bonus paid. Trump expected to ban h1b and other work visas today
f
Holy shit ban H1B? So sad for international students, got fked so hard.
https://www.npr.org/2020/06/20/881245867/trump-expected-to-suspend-h-1b…
I'm a virtual SA so I obviously have no clue what's going on, but have heard anecdotally from people at my bank that things are definitely picking up now. They said back in March/April deal flow was absolutely dead, but now they are starting to see some processes begin to kick off. The issue is that stuff starting now doesn't give a payday for a little while, but hopefully banks feel confident enough in the future that layoffs aren't awful now.
Fairly certain that this has nothing to do with Blair though?
Could you please elaborate on the types of banks that are planning to do this? Are you speaking about only MM firms, (Blair, Lincoln etc) or is this the sentiment across BBs as well?
I'm fairly confident that this was a general note that wasn't intended to be Blair or middle market specific. Do middle market firms even sponsor?
Hey man, thanks for the updates. When/where did you hear this? if opt/h1 gets banned are banks just to fire incoming analysts?
I wouldn't be worried if you are at a firm with significant capital markets presence. Pure M&A advisory is getting screwed big time.
if anyone been following the news a couple of banks have started the layoffs
seems like first years safe tho. also analysts safe but who knows
will this affect exit opps for analysts?
Lol people with families out here losing jobs but this is what matters. Classic WSO.
To answer your question- no. Buyside is still recruiting and you can likely spin working sell side through a pandemic into a positive given how it may change analysis. There could be lack of deal flow to speak to, however you won’t get dinged because of it
very normal for people to ask questions relevant to themselves directly. doesnt mean they do not care or sympathize with whats happening with people in the larger economy.
so 25% of Blair got laid off. goddamn.
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