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.
| +120 | Is my life over after not getting GS? | 30 | 28m | |
| +73 | Best IB group on the Street | 34 | 1h | |
| +66 | Thoughts and tips on how to speak like an investment banker. | 25 | 18h | |
| +58 | BIG FOUR ARE PARADISE | 15 | 18h | |
| +48 | Tell me one good reason why Jefferies isn’t going to be a top bank in the next 5 years | 23 | 11h | |
| +45 | BEING WHITEGIRL IS PARADISE | 11 | 1h | |
| +36 | UBS Outlook | 28 | 1d | |
| +35 | How to deal with egotistical team? | 6 | 3d | |
| +33 | Highest Paid Bankers in Toronto? | 51 | 17h | |
| +29 | Are you “less ambitious” for having long term goals outside of NYC | 13 | 2h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
I would just sue them for racism if they did that to me
lmfaooo +1. +1 for the name as well
Excellent indeed.
Heard Evercore was racist, well, I guess it's on one basis they only like green faces
you're on instagram now? rad. can't wait to see you shilling protein powder with pics of your ass.
Is this legit ? I’m fucking scared now
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.
Three people personally... wow. either you know a lot of people there or this was really fucking bad.
Industrials too. Not 10%, more like 5% but still surprising
Any idea if this affects FT associates that are supposed to onboard this summer?
Yeahh heard second-hand that EVR took ~30-35 summer associates this past year, which corroborates their exponential growth in class size. Scary stuff
Really wondering whether other banks that built out fast (Gugg) will follow suit. Yikes.
Anyone else have details? this could be huge. Also why layoffs on a monday??
Earnings are tomorrow, probably want to justify whatever earnings shortfall happens
BUY PUTS
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.
Few mba buddies got canned today. Dang. It’s getting ugly out there
AS0s that just turned into AS1? Brutal
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.
No they didnt lol
Yes they did. It was mainly operations and traders tho which isn’t anything new
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
Did the auto reply say "pls fix your email address, thx?"
Can confirm the figure was 5%. Also don't believe anyone was sent home in Tech.
What’s the situation in Houston office? Heard the group’s been doing very well
Got hit too but not super bad compared to the other groups
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.
Should SA be worried?
You'll find out when they report earnings tomorrow i suppose.
No. If anything they'll have less conversions but they won't rescind your offer barring any sudden catastrophic market event such as 09
Agree, e.g., election of Warren or Bernie
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.
NY Tech didn’t lose anyone but a VP based in Boston was cut. Menlo also lost a VP
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.
did this impact ISI?
Ya they're shutting down
Source?
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.
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...
Maybe they pick out of a hat
I think there were a few A2As..
Edit - Regional not NYC
How I've personally seen this play out... Firm allegiance: did you start your career here? Somewhere else? Are you a lifer? School allegiance: does the bank have an active recruiting program at your school?
In my experience, I've seen top quality jr bankers from HYS get cut (even A2A's) , because HYS isn't a target school at a MM IB (think HW, HL, Blair, etc.), but watch the guys who recruited from schools just under HYS but have a tight alumni group keep their jobs.
Not sure there are any hard and fast rules, tho.
should i long or short the stock into earnings? pls tell me soon
https://investors.evercore.com/static-files/297d4827-b779-47e3-9871-0c0…
CY19 earnings - report confirmed it’s 6%, not 10%.
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.
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
Appears that they also laid off the graphic designers.
Will this effect incoming analysts? Do they usually rescind offers in situations like this?
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.
Was this focused on IB? What about ISI/ER?
Edit: just saw earnings release already posted
Hearing about coverage, but what about generalists?
are they cutting only non-targets or are ivy league kids in danger too?
and whatever-Georgetown-is kids? are those in danger too?
yes, you and the other peasants from georgetown are going to get george-drowned haha nailed it
That’s not how it works lmaooo
intern thinks senior ppl dont know how industry works. pls fix thx
Georgetown kids are FCKED
Might as well be a bulge bracket.
Well timed Vault. Same day to rank them #2
https://www.vault.com/best-companies-to-work-for/banking/best-banks-to-…
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%.
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.
cutting 1st year associates is slightly concerning
1st yr mba associates get cut all the time though, downturn or not :
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.
LMAOOOOOOOO
name checks out... guess now I know where she got that limp
*who's, Champ
https://seekingalpha.com/news/3535831-evercore-surges-11-after-cost-cut…
Apparently it was ~6% of total staff.
What will these laid off workers do afterwards? Head to another bank? Buyside? Corporate?
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.
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?
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.
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.
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
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.
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
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.
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.
This isn’t shocking or scandalous news, all firms expand and contract. They realign, they experiment and change concentration, they restructure, they reduce spending/perks/headcount. Happens all the time. Bottom line is… it’s invariably always about the bottom line, in how to best spend your money, best utilize your talent, best serve your clients and shareholders.
I’ve worked at various hedge funds, investment banks/advisory firms [boutiques and BBs] as well as law firms - they always go through layoffs at one time or another. Investment banking is far from immune, even if the number usually tend towards the lower end of the scale. 115 is actually a relatively small and tame figure… nothing in comparison to the thousands of layoffs that other firms are doing and have done, whether strictly within their IB divisions or within their other business segments.
Morgan Stanley cut some 1,500. JPM’s cutting a few hundred. RBS is looking at chopping almost 4K from their retail banking. Deutsche slashed nearly 20K. Commerzbank over 4K.
Obviously the European are getting hit far more hard with their shitty balance sheets, shady involvements, interest rate cuts, etc. - and of course I can’t find the article now, but Bloomberg just did a piece about various banks globally cutting a total of some 60K jobs going into 2020, the vast bulk of that in Europe.
Hell, even when times are good, banks will cut back. Back in 2006, Credit Suisse more than doubled their 2rd quarter profits and they still wound up cutting 300 spots in the US.
2019 was Evercore's second-best year since their founding 25 years ago, and they outperformed their various peers, boutique or otherwise. As someone mentioned above, there are some IB’s that cull staff every year. Evercore was just more of a surprise because we’ve never heard “Evercore” and “layoffs” in the same sentence til now.
---deleted---
double-post
Doloribus et excepturi illum aut tempore nihil. Quidem molestias molestias sed animi nesciunt provident. Nihil nulla necessitatibus quos esse quod. Quae perspiciatis rerum autem dignissimos.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
Debitis unde autem veritatis similique. Explicabo ut est aperiam esse. Ratione maxime id totam eum. Qui aperiam quasi nemo nam velit. Aliquid debitis similique voluptatem quam quam totam laboriosam ea.
Vel fuga est modi reiciendis. Non ut odio qui. Eum facilis dignissimos voluptatem quasi. Officia et ut voluptas officiis autem quae.
Delectus facere ducimus qui ipsum. Rerum nobis consequatur illo voluptatem. Non enim soluta quaerat quae eaque provident. Veritatis consectetur accusantium explicabo esse. Aperiam incidunt ab rerum veritatis necessitatibus totam. Sint est culpa sint qui nihil.
Autem dignissimos a voluptatibus. Sed officia et eos voluptatibus saepe. Dolores blanditiis recusandae et soluta ad. Eius occaecati itaque quos reiciendis quisquam in eum. Cum atque vero culpa. Sed eligendi aut modi et.
Pariatur vitae deserunt facilis dolorem eveniet dolore exercitationem. Iure aperiam sint atque sunt eum vitae doloribus.
Corporis dolore aliquid id est ratione rerum. Quod illum et possimus rem placeat aliquam. Cupiditate aut iste corrupti veniam dolores.
Non consequatur et unde beatae eveniet totam. Est eos veniam accusantium.
Et repellat fuga alias hic. Dolores dolorum sapiente eius ea. Quasi voluptatem et asperiores eos ipsam. Magni et tenetur totam iure dolores dolorem sint. Aliquam excepturi cupiditate corporis maiores quibusdam fuga quae esse.