Massive Layoffs Coming to Wall Street?
- Posted on April 30, 2012 at 11:00pm by
Becket Adams
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Massive layoffs could be waiting around the corner for some of Wall Street’s biggest financial firms, according to some of the industry’s top analysts.
As if the markets weren’t volatile enough already.
“Consultants and Wall Street recruiters say banks could eliminate nearly 21,000 jobs from their securities divisions in New York alone,” Fortune reports.
21,000? Do you know what that means?
“That would be a bloodbath on par with the one that occurred during the financial crisis; 28,000 were eliminated in that purge, but that number included jobs lost in the collapse of Bear Stearns and Lehman Brothers,” writes Newser’s Kevin Spak.
Recruiters say the larger financial firms are putting the finishing touches on their downsizing plans and that the layoffs aren’t too far off.
Luckily, there’s a silver lining: even though the larger firms are preparing to fire hundreds if not thousands of employees, smaller investment banks are still hiring. This could potentially offset the major layoffs.
“Hiring is going on, it’s just not by the big banks,” says a top Wall Street recruiter Gary Goldstein, according to Fortune.
Still, this story points to two large problems: larger financial institutions hire more employees than they need and they fail to make the appropriate cuts when necessary. So here we are in 2012 and we’re talking about 21,000 people getting the axe because of poor planning. As the Fortune report notes, the entire situation points to the unpleasant reality that Wall Street operates on an inadequate staffing model.
“Last week, The Boston Consulting Group released a report that predicted banks would eliminate 12 [percent] of their workforce in the ‘short-term,’” Fortune reports, “Recruiters say those numbers sound similar to what they are hearing from the large firms.”
On the list of firms most likely to make deep cuts in their investment banking divisions is Credit Suisse, Bank of America, and Barclays. Overall, recruiters expect all of the banks to make cuts (just not as deep as the aforementioned three).
“Banks haven’t come up with a model that makes up the profits they used to get from propriety trading, CDOs and other structure deals they used to do,” says Goldstein. “I have heard about a lot of people who didn’t get the promotions they were expecting. That’s usually a sign that banks are getting ready to get rid of people.”
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Comments (55)
sbenard
Posted on May 1, 2012 at 6:14amI’m really struggling to feel any empathy for Wall St. I work in the financial markets, but WALL St has received non-stop bailouts from Bubbles Bernanke, and they are still expecting more via another round of QE in June, according to recent opinions by executives at Goldman Sachs.
Do you know where all the printed money went that Bernanke has produced almost non-stop since 2008? To two places: Too-big-to-fail bank reserves, and corporate balance sheets via the stock market. I’ve seen the charts that prove it!
It’s about time Wall St felt its share of the pain. They financed the election of the Terrible Tyrant of Treachery, and are doing it again. There is no love lost between me and the Titans of Wall St. I just wish it was the leaders rather than the underlings that were going to take the brunt of it!
Report Post »Apple Bite
Posted on May 1, 2012 at 8:53amWhen you lay with dogs, you’re bound to catch fleas.
Report Post »poorrichard09
Posted on May 1, 2012 at 9:00amHey, will that make them 99% ers? Then they can join the ows with the people who are calling for their heads this week! Won’t that be fun?
In the 0bozo economy everybody is losing jobs, they may as well participate.
Report Post »MAMMY_NUNN
Posted on May 1, 2012 at 9:14amNo one is immune except the Government right time to send a message to the Government “Your Fired”
Report Post »JRook
Posted on May 1, 2012 at 12:40pm“even though the larger firms are preparing to fire hundreds if not thousands of employees, smaller investment banks are still hiring. This could potentially offset the major layoffs.” Hence no real story.
Report Post »raderby
Posted on May 1, 2012 at 5:25amyou have to ask yourself – what type of person would troll this site if they thought socialism was the cat’s meow? Either a masochist, a commie plant to divide and stir up, a nut, or all 3. I cannot understand the ment at all in such a person. I fart in your general direction, socialist….
as far as Wall St? whatever. They picked their game – take the fall if it comes. Shame is, I will likely be paying for your unem. ins. for the next 2 years+…..
Report Post »Christianmyson
Posted on May 1, 2012 at 4:57amSo Rocks you are as dumb as a Box of Rocks, I bet the best part of you ran down your daddys leg,( if you know who he is.) if not then your mothers throt, sorry folks had to do it forgive me Lord.
Report Post »Christianmyson
Posted on May 1, 2012 at 4:20amCmonnow, Cmonnow, are you that much of an Idiot, people who own and run a bussiness do so for a profit, enough said , well almost , a bit more for thoes of you who are still lost: If you do own a bussiness you do and should always have the right to hire and fire as you please!! It sounds to me Cmonnow that your As$ maybe on the chopping block, if you want a job for life, ( no such thing in America ) move your as$ to China and bend over, and if you don’t like this call your Mother and cry on her sholder, she can probley hear you from her guest room lol lol lol, or call your Daddy Obama, either way grow up and be a man, if you know how, my Lord what is wrong with these people, Brain dead for sure, anyway have a nice day, God bless America!!!!!
Report Post »lassiegirldawn
Posted on May 1, 2012 at 3:49amJust checking profile picture
Report Post »Brasil2520
Posted on May 1, 2012 at 4:41amDawn – Your picture of Barry didn’t post, the rules are: To post a picture the picture can’t be obscene.
Report Post »Apple Bite
Posted on May 1, 2012 at 3:43amIt’s like Enron, just in miniature. Capitalism isn’t the problem, it’s the greedy bastards willing to bend the rules to the very limit, and are so tempted that they go over the line til they’re caught…those are the ones ruining the economy for everyone. Those who play with said bastards, certain reps of the federal government and special interest groups, they’re all looking for a piece of the pie unde rthe table in the back room. They change the laws to benefit what they desire, and then the little man suffers the consequences until a revolt comes about. Then comes the finger pointing and blame game….
This is nothing more than a microcosm of why this country is hurting. But the system of Capitalism itself, should you play by the rules and think about your fellow citizens, it’s perfectly fine. When you‘re just out for yourself and don’t give a damn about others like Warren Buffet and George Soros, bad things happen, everyone loses in the end. We can clearly see this and yet, we have people so willing to blame Capitalism. Catch a clue. No other system has ever been nearly as successful as Capitalism for mankind. Even the China managed to employ some type of Capitalism to keep their country going. Socialism, Marxism, Communism, none of them were successful. You employ those methods, you’ll be repeating the failure of the USSR, Cuba, N. Korea, etc…
Report Post »Bluefish49
Posted on May 1, 2012 at 4:18amIts about time really…now they can see how the rest of the country lives.
Report Post »Brasil2520
Posted on May 1, 2012 at 4:20amGreed is right, like the CEO of Sears/Kmart as his company is looking at bankruptcy he was/is getting lottery sized pay checks and Power Ball size bonuses, he just built a $40 million home, nice.
10+ years ago another CEO of Kmart, again as Kmart was looking at bankruptcy, when he was hired was told no more big bonuses, so he asked for a “loan” of 5 to 10 million, got the loan then after a short time on the job, quit and the loan was “forgiven”
Al Capone, said it best when asked about Wall Street, he said “it’s all a racket”
Report Post »texasbeta
Posted on May 1, 2012 at 4:46amApplebite- I salute your comments. I am one of the few resident liberals here, and folks…I read your comments about us daily. What in the world makes you think I don’t absolutely freaking love capitalism? I just want some rules man, basic rules…and enforce those rules. You do too! The Tea Party was pissed about the banks being bailed out for committing fraud before Freedomworks bought it from you. Then Occupy came out and come on, stoned 22 year olds who haven’t bathed in 2 weeks, and who’s major in college is Finding Themselves 101, didn’t help. Some people of both groups, mind you…few, but some…actually line up with what they want. These jerkoffs screwed us, nobody was watching, those watching made money off of it; it is still happening, both parties are involved, and owned by the very people doing it. The irony is that if everyone was legit, Elizabeth Warren would be the candidate for a third party and winning by a landslide, being supported by both liberals and conservatives.
Report Post »hogtrashhd
Posted on May 1, 2012 at 3:19ammaybe they know the conservatives are coming and they don’t have to put up with the blacks and gays threats and shakedowns any longer.. get rid of that deadwood..
Report Post »cmonnow
Posted on May 1, 2012 at 2:59amYou Blazers are incoherent. The article says that hiring is going on, just not the big banks. Does it not register? The people at the top of these banks want to guard their bottom lines at all cost and will lay off half the work force if they need to. The Government bailed these guys out. And you are surprised that when they get back up and running with record profits that they aren’t going to shave some off the bottom ?? And you think its the cause of socialism ?? This is too big to fail turns into too big to operate efficiently. Since the 80s – the Reagan years – these institutions have been consolidating so that now there are only a few huge companies. When they say that there are too many hires, that doesn‘t mean that the economy can’t support them – it means that the investors and board members want a bigger piece of the pie. It is the same unbridled capitalism that you people go on and on about. Banks have been posting record profits since they were resurrected. Get with it people…
Report Post »Christianmyson
Posted on May 1, 2012 at 4:23amSee Reply futher down!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Report Post »!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!lol lol.
aChameleon
Posted on May 1, 2012 at 1:22amsocalism.rock, Do you really think Wall St. is gonna let the economy have a boom with six months left until the election? They’ve waited 3 1/2 years already, 6 months more is like a walk in the park. As soon as obama is out of office, the money will start to flow again. The Bush tax cuts will be renamed the Romney tax cuts and everybody that had money sitting on the sidelines will get back in the game. Capitalism will triumph!
Report Post »DADA
Posted on May 1, 2012 at 1:02amSocialism.Rocks you’re just another troll. You think the idea of Socialism is to get in debt and screw the bank? You don’t even know what Socialism is about. Most people default because they have lost their jobs. People like you who appear to be cheering on strategic default will find in the end they did not get the affect they hoped for and will never be able to borrow again. Enjoy paying the man his rent with that mentality unless you go all the way to become homeless.
Report Post »PKato
Posted on May 1, 2012 at 2:38amIf you did the right things in your life and was careful you would easily sail through all of this…but if you didn’t, then you suffer. Personal responsibility!
Report Post »Christianmyson
Posted on May 1, 2012 at 4:40amAmen,PKATO you hit the nail on the head, but it is ashame these idiots don’t even know what a hammer is, these people are whats wrong with America, Pray folks Pray, and then Pray some more, then Pray some more, ect. ect. ect. God bless America!!!!!
Report Post »GLENNS_FUTURE_BABY_MOMMA
Posted on May 1, 2012 at 4:40amDADA, why your icon/symbol a woman’s uterus? That’s nasty, ******.
Report Post »hillbillyinny
Posted on May 1, 2012 at 12:55amWhat about the repeal of the Glass-Stegal act under Clinton during his lame-duck session in 1999!
Many believe this repeal is what set up the extreme risk taking which contributed to the cause of this situation!
Report Post »cmonnow
Posted on May 1, 2012 at 2:44amRight. Deregulation started by Clinton and continued under Bush. Completely nonpartisan then. Now, it is the Republicans who seek to ensure that no such regulations are put back in place. The progressives call for more responsible regulation, but the right cries “socialism.” You think you are right, but you are thinking left.
Report Post »VoteRightDammit
Posted on May 1, 2012 at 12:43amCHANGE YA CAN R E A L L Y BELIEVE IN !!!!!!!!!!!!!!
Oh – and thank you very much, Dodd-Frank!
Report Post »Conservative_T-Rex
Posted on May 1, 2012 at 12:12amwhy can’t we just let stupid corporations fail??? if they wanna be greedy, they’ll eventually fail. stupid gov‘t has to go and bail them out and now they’re back to their old ways.
game/quiz for you fox news watchers: http://www.sporcle.com/games/Bohnfather/fox-news-personalities
Report Post »TheBurningTruth
Posted on May 1, 2012 at 12:05amWhen the Marxists and Socialists jump for joy (as they surely will) you won’t ever hear them acknowlege the hit to the economy this will cause. Whenever there are govt employee layoffs, we always hear about how those people have less to spend and we all lose from reduced taxes. Of course, when high paid Wall Street financial workers (sounds a bit like ‘sex workers’ doesn’t it?) lose their high paid jobs, that is a much larger hit to economic activity and tax revenue.
So, if you hear President Marxist, Prince Harry, or Comrade Pigloski crowing over these layoffs but lamenting layoffs in govt, you know (as if you didn’t already) that it’s all about making the successful among us pay for the losers.l
Report Post »lassiegirldawn
Posted on April 30, 2012 at 11:57pmAll just another smoke screen for the government to control all banking. The less people in the way the easier to control. Look at all the wall streeters who has been giving to the Commie In Chiefs campaign.
Report Post »Detroit paperboy
Posted on April 30, 2012 at 11:40pmWall street supported this Marxist, they get what they bought and paid for ……….. And they deserve it !!!!!!!!!
Report Post »socialism.rocks
Posted on May 1, 2012 at 12:01amthe stockmarket has destroyed more wealth then its created.. its a epic failure…
boom bust has cost tax payers more then wallstreet gains ever produced thats its destroyed more dollars then it ever created——— its socialism for the rich
wallstreet is the biggest ponzi game in history… it used to be venture capitalist meaning.. it would invest money into corporations.. to expand them now its just a slush fund to inflate and deflate costs for products and services
Report Post »barber2
Posted on May 1, 2012 at 12:27amRocks.. please peddle your Far Left diatribe somewhere else ..surprised you aren’t already heading to some Occupy party. ( think I know WHERE those “ rocks” are located…north of your neck..)
Report Post »seeker9
Posted on May 1, 2012 at 12:35am@SOCIALIST.ROCK
Report Post »Any one ever told you how strange your out look is? Even Commie countries have stock markets. I am not doing so bad being in it. One should sell, sell, sell when economic indicators say to sell (even if they are manipulated). It destroys wealth when one makes the wrong decisions.
Where do you suppose start ups like FaceBook, Zynga, LinkedIn, GroupOn, etc. get capital for growth?
marine249
Posted on May 1, 2012 at 1:31am@SUCKS
Report Post »I see you are back again looking for more FOOLS [suckers]
like you, looking to suck off the gov, hind teet.
KangarooJack
Posted on April 30, 2012 at 11:38pmSomehow I don’t think there will be a huge outcry of “good riddence” on this story. Apologies, but “Wall Street” IS NOT some mythical figure of phantoms. Wall Street is a DIRECT indicator of our Economy. Lay Offs? Well, guess McDonalds will hire all.
Report Post »The alternative is to move back into your parent’s basement and become a Full Time Occupy Wallstreet disgruntled protestor. That’s about 5% of the protestors….the rest of them have NEVER held a job in their lives.
cuinsong
Posted on April 30, 2012 at 11:33pmThey will have unemployment ins to tide them over while we degenerate into a 3rd world communest country
Report Post »lukerw
Posted on April 30, 2012 at 11:32pmThanks to… MAD (Mutually Assured Destruction)… supported by the Committee on Foreign Relations (prop up Europe)… Monitary Destruction will come to the US… and all those Liberals who supported Socialism will suffer with everyone else!
Report Post »socialism.rocks
Posted on May 1, 2012 at 12:27amit was capitalist bankers goldmans bank of america and hedge funds that purposely short sold the euro
while putting insurance on it knowing it would collapse “Europeans socialists know this” even conservative germany knows this
the shockwave is coming is spain and italy purposely defaulting… thats right they will default leaving goldmanschraps & bank of america and hedge funds in the lurch for trillions of dollars
austerity is great….. after you default
Report Post »austerity is just a rip off… when you know that you were shorted… and purposely collapsed on fricken purpose…
capitalism verse socialism
capitalism tried to destroy socialism via economic terrorism
socialism is now fighting on the terms of capitalism~
its called free-enterprise baybehhhhhhhhh
Default baybeh default~ those bankers are going to lose big-time
go socialists-go
let the capitalists in turn be shorted~
rarw~!
i love it, its going to be great
god bless socialist france.. god bless libertarian spain
god bless christian socialist italy..
capitalism sucks bawls
http://www.youtube.com/watch?v=QSWWWm8sjxY
Itsjusttim
Posted on May 1, 2012 at 1:05amI think Socialism sucks quite well on it’s own. Socialism is against the very fabric of nature and reality, and the fact of the matter is that paying people to do nothing will just increase the number of people who do nothing.
Report Post »socialism.rocks
Posted on May 1, 2012 at 4:15am@Itsjusttim
lets say this the founders fled conservative europe and then killed them during the revolutionary war…
the founders not alone h8ed conservativism…they litterally blasted them in the face
Report Post »welovetheUSA
Posted on April 30, 2012 at 11:30pmWhen you support a communist president you will all go in the end……..even hollywood will be told what they can or cannot do…you all asked for him…paid for him….bye
Report Post »hi
Posted on April 30, 2012 at 11:24pmhttp://boudicabpi.wordpress.com/2011/03/08/montana-bear-tragedy/
Report Post »Snowleopard {gallery of cat folks}
Posted on April 30, 2012 at 11:23pmAnd now the first shockwaves hit America.
Report Post »cuinsong
Posted on April 30, 2012 at 11:20pmTheir is always NObama’s unemployment to tide them over while we transition into a communist country where no one has a chance to get rich
Report Post »RLTW
Posted on April 30, 2012 at 11:12pmF@#Kin 401K!
Report Post »seeker9
Posted on April 30, 2012 at 11:12pmThanks Dodd/Frank.
Report Post »Al J Zira
Posted on April 30, 2012 at 11:41pmTruer words were never spoken. Why they’re not in jail is beyond reason.
Report Post »barber2
Posted on May 1, 2012 at 12:46amYes. And That even earlier assault on capitalism : ACORN/Discrimination Card played by the so-called Democrats to force banks to give loans to minorities and to ” the poor.” The jobless with no credit history. Loans that could never be repaid. Thanks, “ Far Left ” Democrats . Destroying capitalism. So cleverly. So secretly. Like Obama’s school records. Hidden from public viewing.
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