Lay-offs soon?
With all scared things happening and most of the deals get parked, how soon IB gonna start slashing people on the floors?
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this.
Nothing on the street yet?
All these banks have come out with these emails for incoming FT saying all offers are being honored. So unless they are all completely lying or willing to directly go back on their word (100% possible this could happen), I think it will be a minute
Can you tell me which banks have said this? Anything from European banks? Thanks.
It isn’t that banks are lying, it is that banks (and basically most firms out there) don’t know what will happen, so they are basing information off of today. To be clear, new hires and interns aren’t the expensive people and are usually in a decent spot in times like this.
That being said, all firms will be looking to see how this plays out, how much revenue might be lost, when (and how quickly) a recovery will happen, etc. If firms are taking big hits, there isn’t work, or any other serious conditions they will begin exploring ways of cutting costs. In a standard scenario this can happen through regular attrition (slow down/freeze hiring, don’t replace the people who leave and maybe shift people to where there are projects, trim some expensive benefits/perks), in a more serious scenario there will be layoffs (again less impactful for new people, although you also can’t add value as a new person and are expensive to train), and a very serious scenario will see large layoffs and rescinding offers, etc. I had friends during the financial crisis that were hired just to be laid off 4 months later, this isn’t to be alarmist or worry you, it is just that firms manage to the situation, the information they have, and their best guess of how it will play out.
Just think about it this way: what do you think will happen over the next 4 months? Have you seen the projections? They are all over the place. Firms don't have any magic 8 ball, so they are giving information based on what they know, what they are predicting and how they see this play out. But judging by projections out there, inevitably some people are wrong (a few will be very wrong) people just don’t know. Also, firms won’t say layoffs until they are sure they are doing them, you won’t get an email saying “hi new hire, we are seriously considering rescinding your offer and implementing layoffs, but we’re still thinking about it”, nope, you will be notified that until further notice all is as planned, which is true, the question is how close to flipping that are they? Is it 90% chance it goes, or 51%? Again not alarmist, just trying to share perspective on how these things work.
Can we ban anymore of these threads there are already so many its annoying.
No one knows what is going to happen (not even banks themselves at this point) stop asking point questions.
Obviously there will be layoffs, at least around YE. Either expensive seinors or newbies on LIFO basis. Had this happen to me when I just started and seen this many times over the last few years.
This much bigger than you, and there's nothing you can really do. Focus on aspects of your life that you can still control, and you will be fine in the long run.
If you don’t mind me asking, what did you do after you were put in similar position as far as finding a new role?
wait and continue interviewing with different places. Eventually market would recover and firms will hire again. Some of my friends waited 6-12 months until they found and started another job, some even better than their old gigs. the key is to be patient and keep trying. this is not something you can really control.
What's the rational behind firing a 2nd or 3rd year analyst over a 1st year analyst who doesn't know anything / isn't anywhere near the level of being able to add value?
My sense is that most folks think this is relatively short term in nature (2 - 6 months). Noone is sure, so it does not make sense yet for banks to lay off junior level folks right away. Today and yesterday felt more normal to me, people want this to pass. The underlying economy is strong. A bit of good news could boost the markets big time.
Banks and the economy are not the genesis of this problem. Please just be patient.
Can you imagine working from home for 6 months?
dude can you imagine being a small business owner? their revenue just went to zero, I think you'll survive working from home for a while
It would be weird, but I am already starting to get used to it. Read about adaptability throughout human history.
But they are the biggest victims.
I'm in the leveraged lending space and it seems like things are pretty busy. One of our senior risk guy was planning to retire this year but was ask to stay for another 5 years with a large increase in pay to help guide us through this uncertainty.
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BB’s are going to have pretty deeps cuts, but I expect they wait until we see where things land. They’ll use this as a time to trim some of the non producing fat at the top and juniors/mid-levels in M&A, ECM, and DCM and affected coverage groups will be in jeopardy. Some will of course be stronger. But that will be the exception not the rule. I also expect bonuses to be absolute shit.
For EBs I expect it to be less of an impact on both jobs and bonuses, both due to the relative job security as well as the proliferation of restructuring exposure. But it’ll still be a legitimate down year across the board.
Hopefully it’s short lived but I expect the rebound to be slower than many are hoping for, especially in an election year which are historically volatile.
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