Evercore Layoffs

Associate 2 in IB - Gen

Looks like mass layoffs at Evercore today. All US offices at least. Hearing approximately 10% of the work force and everything from Associate 1 through Senior MD. Seems like a bloodbath. Anyone got anymore information?

This is usually a big bank thing (over hire and the do mass layoffs, like MS and JPM have already done this year) but not surprised to see it considering EVRs growth rate.

Comments (130)

Funniest
Jan 28, 2020

I would just sue them for racism if they did that to me

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Jan 28, 2020
GS_Diversity_Analyst:

I would just sue them for racism if they did that to me

lmfaooo +1. +1 for the name as well

Jan 30, 2020

Excellent indeed.

  • Subtly bullish -
Jan 30, 2020

Heard Evercore was racist, well, I guess it's on one basis
they only like green faces

    • 2
Jan 31, 2020

you're on instagram now? rad. can't wait to see you shilling protein powder with pics of your ass.

Thank you for your interest in the 2020 Investment Banking Full-time Analyst Programme (London) at JPMorgan Chase. After a thorough review of your application, we regret to inform you that we are unable to move forward with your candidacy at this time.

  • Prospect in IB-M&A
Jan 28, 2020

Is this legit ? I'm fucking scared now

    • 1
Jan 28, 2020

Definitely legit - know at least three people personally that have been laid off. I don't have a lot of other details, though, OP. But generally hearing the same thing you are. Also heard consumer was unaffected but that Healthcare, Real Estate, Tech and Telecom all had layoffs.

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  • Analyst 1 in IB-M&A
Jan 28, 2020

Three people personally... wow. either you know a lot of people there or this was really fucking bad.

  • Associate 1 in IB - Gen
Jan 28, 2020

Industrials too. Not 10%, more like 5% but still surprising

    • 1
Jan 28, 2020

Any idea if this affects FT associates that are supposed to onboard this summer?

Jan 28, 2020

Yeahh heard second-hand that EVR took ~30-35 summer associates this past year, which corroborates their exponential growth in class size. Scary stuff

Jan 28, 2020

Really wondering whether other banks that built out fast (Gugg) will follow suit. Yikes.

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  • Director in S&T - Equities
Jan 28, 2020

Anyone else have details? this could be huge. Also why layoffs on a monday??

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  • Associate 1 in IB - Gen
Jan 28, 2020

Earnings are tomorrow, probably want to justify whatever earnings shortfall happens

Jan 29, 2020

BUY PUTS

Buying tesla weeklies is literally free money.

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Jan 29, 2020

I wouldn't mind getting laid off on a Monday. Well, I would obviously rather not be laid off, but assuming the decision has been made, I'd rather get the news as soon as possible.

  • Associate 1 in IB - Gen
Jan 28, 2020

Few mba buddies got canned today. Dang. It's getting ugly out there

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  • Business School in IB - Gen
Jan 28, 2020

AS0s that just turned into AS1? Brutal

Jan 28, 2020

what do you mean getting ugly out there? Haven't heard anything about this being a street-wide occurance

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Jan 29, 2020
blank112:

what do you mean getting ugly out there? Haven't heard anything about this being a street-wide occurance

Morgan Stanley also had a large round of layoffs last month that included people as junior as associate 1 at the time (i.e the people who had been there 18ish months). And Lazard also had a large round of layoffs in October/November.

Not super widespread, but not isolated either. I expect we get a few more of these before bonuses get paid in February / March at most places.

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Jan 29, 2020

No they didnt lol

Jan 29, 2020

Yes they did. It was mainly operations and traders tho which isn't anything new

  • Intern in IB - Gen
Jan 28, 2020

bad day for me to have sent out 40 cold emails to Evercore people? i'll let you guys know how many bounce back once I follow up

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Feb 1, 2020

Did the auto reply say "pls fix your email address, thx?"

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  • Analyst 2 in IB-M&A
Jan 28, 2020

Can confirm the figure was 5%. Also don't believe anyone was sent home in Tech.

Jan 28, 2020

What's the situation in Houston office? Heard the group's been doing very well

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Jan 30, 2020

Got hit too but not super bad compared to the other groups

  • Associate 1 in IB - Gen
Jan 31, 2020

Perhaps I have bad info--was told it was 5-6? Out of that office, and at the associate/VP ranks that would be pretty significant (~10% of headcount). Particularly given that they've been one of the only bright spots in O&G lately.

  • Prospect in S&T - Other
Jan 28, 2020

Should SA be worried?

Jan 28, 2020
Prospect in S&T - Other:

Should SA be worried?

You'll find out when they report earnings tomorrow i suppose.

Jan 29, 2020

No. If anything they'll have less conversions but they won't rescind your offer barring any sudden catastrophic market event such as 09

Jan 29, 2020

Agree, e.g., election of Warren or Bernie

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Jan 28, 2020

Pretty sure no one in tech was cut.

Number was closer to 5% than 10% but the cuts were sizable. Associate 1s and 2s were hit abnormally hard. Guess EVR didn't want to pay out bonuses in March.

  • Associate 1 in IB - Gen
Jan 28, 2020

NY Tech didn't lose anyone but a VP based in Boston was cut. Menlo also lost a VP

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  • Analyst 1 in IB - Gen
Jan 30, 2020

Heard Menlo tech was gutted. 8 VP's and 92 MD's were laid off. The admins are pitching clients now. One analyst covers 103 companies. Rumor has it he hasn't slept in weeks.

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  • Prospect in IB - Gen
Jan 28, 2020

did this impact ISI?

  • Analyst 1 in IB - Gen
Jan 30, 2020

Ya they're shutting down

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Feb 2, 2020

Source?

Jan 28, 2020

Strange that associate 1's would get the axe; I've heard from others that usually in IB layoffs VP's and Directors get the axe first since they're so much more expensive to keep; associate 3's I understand get the axe if they were passed over for VP but associate 1's?

Well come to think of it, the Evercore group I met with was very associate heavy although they feasted like kings from advising Anadarko on its sale to Oxy.

  • Business School in IB - Gen
Jan 28, 2020

Same question here - how do you even determine which Associate 1's to cut? Is it the bottom 10%, Jack Welsh style? Maybe those in underperforming groups (and if so, aren't Associate 1's generalists anyways)? Curious too understand how the process works...

  • Prospect in IB-M&A
Jan 29, 2020

Maybe they pick out of a hat

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  • Analyst 1 in IB - Gen
Jan 29, 2020

I think there were a few A2As..

Edit - Regional not NYC

  • Trader in PropTrad
Jan 29, 2020

should i long or short the stock into earnings? pls tell me soon

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  • Incoming Analyst in IB-M&A
Jan 29, 2020

https://investors.evercore.com/static-files/297d48...
CY19 earnings - report confirmed it's 6%, not 10%.

  • Associate 1 in IB - Gen
Jan 29, 2020

Further, in the first quarter of 2020, the Company completed a review of its operations focused on markets, sectors and people which delivered lower levels of productivity in an effort to attain greater flexibility of operations and better position itself for future growth.
This review, which began in the fourth quarter of 2019, will generate reductions of approximately 6% of our headcount.

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  • Prospect in IB - Ind
Jan 30, 2020

Question is whether the layoffs really were focused on cost optimization, and not in preparation for an impending downturn. The former is more firm focused, while the latter sounds like something that can be Street-wide

    • 1
Jan 29, 2020

Appears that they also laid off the graphic designers.

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  • Prospect in Risk Mnmgt
Jan 29, 2020

Will this effect incoming analysts? Do they usually rescind offers in situations like this?

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Jan 29, 2020
Prospect in Risk Mnmgt:

Will this effect incoming analysts? Do they usually rescind offers in situations like this?

They won't.

    • 1
Jan 29, 2020

Layoffs were 6% of headcount, mostly hit associates (A2-3) and VPs and a few MDs that weren't producing.
Main areas were industrials, healthcare, generalist pool, real estate and telecom.

  • Research Analyst in ER
Jan 29, 2020

Was this focused on IB? What about ISI/ER?

  • Business School in IB - Gen
Jan 29, 2020

Edit: just saw earnings release already posted

  • Analyst 1 in IB - Gen
Jan 29, 2020

Hearing about coverage, but what about generalists?

Jan 29, 2020

are they cutting only non-targets or are ivy league kids in danger too?

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Jan 29, 2020

and whatever-Georgetown-is kids? are those in danger too?

    • 3
Jan 29, 2020

yes, you and the other peasants from georgetown are going to get george-drowned haha nailed it

Thank you for your interest in the 2020 Investment Banking Full-time Analyst Programme (London) at JPMorgan Chase. After a thorough review of your application, we regret to inform you that we are unable to move forward with your candidacy at this time.

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  • Intern in IB - Gen
Jan 29, 2020

That's not how it works lmaooo

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Feb 14, 2020

intern thinks senior ppl dont know how industry works.
pls fix thx

Jan 29, 2020

Georgetown kids are FCKED

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Jan 29, 2020

Might as well be a bulge bracket.

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  • VP in IB - Ind
Jan 29, 2020

Well timed Vault. Same day to rank them #2

https://www.vault.com/best-companies-to-work-for/b...

    • 3
Jan 29, 2020

My condolences to anyone affected, but this isn't that big a deal. Goldman lays off a bigger percentage of their people every year. And it would have been pretty miraculous if Evercore, having expanded as quickly as it has and into businesses (e.g. ER, ECM) that weren't in the firm's DNA, wasn't off in its headcount targets by +/- 10%.

Jan 29, 2020

Not trying to be a D, but why is everyone so shocked ? I mean layoffs are part of the industry. Not sure it means the situation is dire.

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  • Intern in IB - Gen
Jan 29, 2020

cutting 1st year associates is slightly concerning

    • 2
Jan 29, 2020

1st yr mba associates get cut all the time though, downturn or not :

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

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Controversial
Jan 29, 2020

You know who didn't get laid off? That guy with the perfect hairline whose been fucking your girlfriend behind your back and calls you "champ" when he staffs you on an all-nighter. Shame because he's got money in a trust fund to blow through anyway and hardly needs the job.

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Jan 29, 2020

LMAOOOOOOOO

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

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Jan 30, 2020

name checks out...
guess now I know where she got that limp

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Jan 30, 2020

*who's, Champ

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Jan 30, 2020

https://seekingalpha.com/news/3535831-evercore-sur...
Apparently it was ~6% of total staff.

Jan 30, 2020

What will these laid off workers do afterwards? Head to another bank? Buyside? Corporate?

Jan 30, 2020

If past experience is any indication, they pretty much all end up at other banks. Corporate possible but banks are so used to their own layoffs that they know it can happen to anyone so they're more receptive of those who've been cut elsewhere.

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Jan 30, 2020

How unique is EVR for being in the ISI and ECM business as a boutique?

Research especially seems out of place without an S&T business.

Capital markets a little less clear to me whether that's logical or not . . I can see having an ECM business without S&T, but also see how S&T would help that biz and it seems other boutiques don't do ECM. But wondering (i) if my facts are even correct there and (ii) if they are indeed unique for having these lines, is there a good defense of it?

Jan 31, 2020

Not particularly unique. Gugg and Moelis (and probably others - I don't pay that close attn) have moved into ECM / ER. The reasons are pretty simple - when a company goes public the mgmt team and board build close relationships with the bookrunners. Tough to sit on the sidelines for that company-defining transaction and show up later trying to get M&A business.

Jan 31, 2020

Makes sense, thanks. I guess the reason not everyone does what EVR/Gugg/Moelis is doing, is that its not easy to build a viable ECM business.

  • Intern in HF - Other
Jan 31, 2020

Could you rephrase "Tough to sit on the sidelines for that company-defining transaction and show up later trying to get M&A business."? I don't get what you mean. tnx

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Jan 30, 2020

Will this mark the end of the "independent advisory" era? Banks like EVR are too big to be boutiques but still not big enough to be BBs... it seems that they have reached peak growth over the past decade and can hardly go beyond that.

  • Analyst 1 in IB-M&A
Jan 30, 2020

I think it might demonstrate why you shouldn't stray from the independent advisory model (which is what EVR did by building out into a bunch of random product areas and rapidly expanding). PJT for instance absolutely killed it this year with the same small head count model

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Jan 30, 2020

will definitely keep my heads up for PJT earnings coming up next week... as far as I am aware of the firm is looking to expand their M&A and RSSG classes by 2x, which obviously reflects good business but at the same time raises concerns of overgrowing (which will lead to the potentiality of random products as you've mentioned in the case of EVR). I don't know if PJT has any other offerings besides M&A, RSSG and Camberview, but it has definitely killed it over the past several years.

  • Analyst 1 in IB-M&A
Jan 31, 2020

Wtf are you talking about? Evercore was #5/6 US M&A league tables. I don't work at EVR but at another EB but we know those guys are killing it.

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Most Helpful
Jan 31, 2020
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Jan 31, 2020
Feb 3, 2020