They might rescind some offers from some kids who will graduate in the spring.

I do not know how that process would go however - if a bank keeps a waitlist, and a few of those kids get in - I would imagine they would be the first to go.

Also, first year analysts already in the game would have to be performing pretty poorly/not getting along with their peers/superiors to get fired I believe. But it does happen.

Bottom line is anyone who tells you layoffs don't affect analysts is lying to you. Granted it's much easier for non-performing MDs and VPs to get laid off to reduce expense, and associates aka glorified editors/go-betweens, to get the boot - it just doesn't make sense to have 2x the number of analysts covering the MDs. Most rain-making MDs can't take 2x the meetings they already do, you know?

 

I should have also noted - analysts also tend to avoid the layoffs more than their peers because of the program itself. You go to a bank. You work 2-3 years, you leave (while maybe 5-10% get offers for associate). The bank can fix the disproportionate numbers by cutting incoming classes and paying out sh*tty bottom bucket bonuses, basically saying "you work here for $15 an hour, you can stay if you want".

 

I read this in NYT or WSJ a few days ago, so it is substantiated.

I dont think they explicitly said it was 4k exclusively from IBD. It said something to the effect of 4k JPM layoff, 6k BSC being taken on... net of +2K.

I happen to personally know a JPM Global Head who has been pushed down a notch and put under a BSC guy. Should be interesting to see how these types of indirect replacements will effect the firm.

Also recently went to a career networking event SWARMING with BSC guys. The job mkt has gotten SO much tighter post-BSC.

 

Does the 50% cut in the 1st year IBD class mentioned in Dealbreaker also include all the analysts that were cut at Bear?

If all of the 50% were only original-JPM analysts, then the job market just got that much tighter...

------------ I'm making it up as I go along.
 
Best Response
thehadj:
what does this mean for incoming analysts?

its going to be a nervous time for incoming analysts at JPM. I doubt they will rescind your offers.

They probably cut their analysts (including bear's) because they know that you guys are coming in.

In all honesty, its too early to tell. Just keep in mind that Bear's analysts started when the BSAM hedge funds blew and people were speculating that Wachovia was going to buy the bank.

1 year later..JPM owns them. Also, Goldman put half of its S&T analysts into operations. Since JPM has a new prime brokerage arm, even though it is filled with Bear guys, it may divert some incoming analysts to that area..its possible.

But I doubt that any of the incoming analysts should be worried about being laid off / fired in the 1st six months. And hopefully the market conditions can do a 180 so you guys can go on speculating and dreaming about making a million dollars at a hedge fund or pe shop after your two years..

------------ I'm making it up as I go along.
 

There will definitely be layoffs in JPM SLF; numbers will be decided within a few weeks was the message from senior management. Don't know about the 1st years, but some 3rd year analysts this morning were told to start looking for other opportunities.

 

what happened to that brilliant theory that "analysts are the cheapest to retain, they'll be the LAST to go!"

notice the article mentions nothing of VPs or associates.

_______________________________________ http://www.drmarkklein.blogspot.com/
 
danbush is a XXX:
what happened to that brilliant theory that "analysts are the cheapest to retain, they'll be the LAST to go!"

notice the article mentions nothing of VPs or associates.

I don't think it is very funny. I know a person in that group that is an analyst. How would you like it if you lost your job? I bet you're still in college...

 
napoleon:
they want to leave will just be given bonuses 25-50% of expectation and will leave on their own

thats not laying them off. your theory is still completely stupid.

_______________________________________ http://www.drmarkklein.blogspot.com/
 

I feel for these guys... Even if the rumors are false, it's still got to be stressful.

In response to the frequently heard theory about analysts being the cheapest and therefore the last to go -- I think JPM hired a truly Massive analyst class this year and it would stand to reason that if their most booming IBD practice (SLF) is practically at a standstill, that they may just have too many bodies.

 

Groups heads called meeting monday afternoon and said that the decision has already been made, just a matter of finalizing how many and who. Expect that all levels will be affected. Folks are on pins and needles.

 

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