Quasi Layoffs - Definitely Random, Still Happening

Could you provide some more information about JPM's moves? Are people in other divisions getting cut or is it just IBD people getting moved? Also about LEH's rumored cuts (where these rumors are coming from/who may be cut)?

Thanks

Your sample size isn't large enough to say the moves are random. I would caution you to jump to that conclusion. There could have been other issues. Banks don't just pick names out of hats. HR has various interests to keep in mind when making these decisions (the group, specific bankers, universities, etc.). There is no drawing out of a hat.

nystateofmind - i understand what you're staying, perhaps i should have titled my post - definitely still happening, possibly random - but just for other people out there - i have it from a pretty decently high authority that the decisions are in fact, random. and thus far, some of the worst analysts from last summer (this is not my perception, it's commonly accepted fact) have strangely been retained, whereas some of the best (ie - people that were asked to present to a large meeting of managing directors at the end of the summer) have been shifted. the rationale i'm hearing, which makes some sense to me, is that JPM is truly planning on honoring these people's offers in a year and that they want to distribute the talent throughout both classes so that the current class isn't great and the bank is stuck inheriting the less stellar analysts next year. take it with a grain of salt though i guess.

JohnMcClane - thus far it seems to be only ibd analysts that are being shifted. my sources at jpm haven't indicated that anyone else is going to be shifted in the upcoming weeks, but it could happen. as far as lehman, two vps in ibd independently told me that we are anticipating cuts next week. don't have a ton more info though. sry

I can confirm that this is happenning at JPM and have been told by people in positions to know that such ax-swinging has been done randomly across the incoming IBD class and across all groups.

I know multiple people affected and know that some of them were top performers in their respective groups from Ivy league schools or Ivy-equivalents.

Take it or leave it, but that's the scoop.

Jesus Christ

In case people were curious about the rumor mill: http://dealbreaker.com/2008/06/layoffs_watch_08_lehman_boa.php

love the way ibo's been consistently beating dealbreaker by a day or two on the layoff calls - srr any more info on the lehman stuff since you seemed to call it early?

can anyone confirm the Lehman figures?

No joke. As another poster said, not only affecting IBD but other specialized groups, as well. Sucks if you think about students who have just graduated college and get calls AFTER school/recruitment is completely over.

have been hearing rumors about ML laying off a good number tomorrow as well. can anyone confirm?

at least the folks at JPM are being shifted to other parts of the bank. news on what's happening to incoming analysts at Lehman?

this is obviously not the "best" source... but here: http://dealbreaker.com/2008/05/2008_bonus_payouts.php#comments

that's why i was hoping to confirm with others.

those bonus numbers seem to be inflated. It seems hard for me to imagine that Citi, lehman and ML can afford to pay so much after all those write downs. I don't think GS would also pay so much above the bracket. Are these numbers for S&T and banking or just banking? Because I would imagine bonuses in S&T to be more widespread, e.g from 70K to 110K depending on group performance.

does anyone have any kind of news/update/rumor on ML and Lehman possibly cutting incoming IBD analysts? while i think both firms have excessively large classes, what would be the upside of cutting the class in half... maybe $10 million in savings -- but then net of severence, probably less than that...

other than not wanting people sitting around making paper clip toys, what's the rationale for outright cutting first year IBD analysts at this point? might as well put them to work somehow.

I don't think incoming classes usually get severance. They will probably let you keep the 10k relocation bonuses and that's it. Incoming analysts haven't done any work to merit severance.

I was referring to ML. No idea about LEH or BofA.