Layoffs

  • News

    Layoffs Watch ’12: UBS

    UBS is said to be embarking on a “fresh round of cuts” in the investment bank, starting with the team in Europe.

    UBS, Switzerland’s biggest bank, plans to cut about 80 to 90 jobs in its European investment- banking division as part of a global revamp, according to two people familiar with the matter. The cutbacks, which are likely to take place before year- end, would amount to about 17 percent of staff within the region’s investment-banking division and include junior and senior bankers, said the people, who asked not to be identified because the plans are private. The division includes merger advisory and equity and debt capital markets. The reductions probably will kick off a fresh round of job cuts within the broader investment bank, which includes UBS’s fixed-income and equities units, said the people.

    [Bloomberg]

    / Sep 18, 2012 at 6:38 PM
  • News

    Layoffs Watch ’12: Nomura

    The company is still in the firing phase of the rebuilding process.

    Nomura Holdings cut a team of London proprietary traders focused on stocks as Japan’s largest brokerage scales back in Europe, said two people with knowledge of the matter. The group of about five traders was part of Nomura’s Angel Lane Principal Strategies, a unit that makes speculative wagers on markets with capital provided by the Tokyo-based bank, according to the people, who declined to be identified because the job cuts haven’t been announced. The team departing this week was led by Anthony Medina, a volatility trader who used options to bet on fluctuations in the prices of stocks, the people said. The departures are part of Nomura’s plan to reduce costs by $1 billion, with almost half the savings coming from Europe. The revamp in strategy follows a four-year struggle to build a business overseas following the purchase of Lehman Brothers Holdings Inc.’s European and Asian units in 2008.

    Nomura Said To Cut Team Of Proprietary Traders Focused On Stocks [Bloomberg]

    / Sep 14, 2012 at 3:29 PM
  • News

    Layoffs Watch ’12: UBS?

    Cuts are said to be coming in the near-ish future.

    “More layoffs are expected to take place within the next 2-3 weeks with at least 10pct cuts across the board in sales, research and trading. Morale has reached a new all-time low (hard to imagine it could become lower?) and at this point many have the attitude that if they get out now at least they’ll get a package out of it.”

    / Sep 13, 2012 at 3:50 PM
  • Hedge Funds

    Louis Bacon Recruits Brother To Have Tough Conversations With Employees Re: The Fact That They No Longer Work At The Firm

    One thing you may or may not know about hedge fund manager Louis Bacon is that he likes to keep his human interactions to a minimum. It’s not a personal thing, just people in general thing. He doesn’t like ‘em and he doesn’t want to talk to or look at ‘em. For example, rather than taking five minutes to tell a subordinate he disagrees with a trade idea, Bacon has been known instead to “retreat to his office and place an opposing trade, a tactic known as ‘fading’ a colleague.” Clients are treated similarly (“During meetings with…investors, Bacon, who often draws the blinds in his private office, frequently turns to his lieutenants to answer questions, often sitting silently through presentations“) and if you thought that being, say the fruit of his loins meant special treatment, you were sorely mistaken (“One longtime assistant negotiates annual spending allowances with the elder of his children individually…Once they’ve agreed on the number, the assistant invites the child for a sit-down meeting with his or her father, during which Bacon usually signs off on the terms“). So it probably did not come as much of a surprise when LB hired his brother, the improbably named Zack Hampton Bacon III, to speak with a dozen or so members of the staff re: security waiting to escort them out of the building.

    Moore Capital Management LLC, the $15 billion hedge fund run by Louis Moore Bacon, cut 10 to 15 investment jobs as it restructures one of its equity teams, according to three people with knowledge of the matter. The portfolio managers and research analysts were let go on Sept. 11, said one of the people, who asked not to be identified because the information is private. Patrick Clifford, a spokesman for New York-based Moore, declined to comment.

    “Apart from a few hedge funds, it’s not that typical to see a large reduction in headcount in the industry,” said Ronen Schwartzman, founder of Ten Capital Advisors LLC, a New York- based firm that advises clients on investing in hedge funds. “Performance must be having an impact.” Bacon, 56, hired his older brother, Zack Hampton Bacon III, in February to oversee strategic planning, a person briefed on the matter said that month. Bacon told clients last month that he planned to return $2 billion, or about 25 percent of his main fund, to investors, saying it may be too big for him to generate returns in line with historic profits as “liquidity and opportunities have become more constrained.”

    On the bright side, no one was “sprayed in the face” with lead pellets, so not all bad.

    Moore Said to Reduce Positions Amid Equity Restructuring [Bloomberg]
    Related: Louis Bacon Has Better Things To Do Than Explain How Big An Idiot You Are

    / Sep 13, 2012 at 12:40 PM
  • News

    Layoffs Watch ’12: Deutsche Bank

    The Germans are “going on a diet” that will involve a “painstaking, methodical, meticulous approach to boosting efficiency” and “very significantly streamlining” in the investment bank and no one, not even the people hiding out in Chicago are safe.

    “Yet more DB cuts: 3 directors, 1 managing director and 1 vp in Chicago last week.”

    [MarketWatch]

    / Sep 12, 2012 at 7:36 PM
  • News

    Deutsche Bank Had A Bunch Of Tough Good-Byes Today

    In addition to cuts in the Industrials; M&A; Real Estate, Gaming, Leisure & Lodging; and […]

    / Sep 10, 2012 at 6:22 PM
  • News

    Layoffs Watch ’12: Deutsche Bank

    Cuts are said to have gone down in DB IBD.

    From the front lines:

    “Yet another round of layoffs here (2nd / 3rd round in most groups). Following the same pattern of 2-3 per group to avoid big news. All levels affected. Another possible round coming before year end.”

    / Sep 10, 2012 at 1:03 PM
  • News

    Layoffs Watch ’12: UBS Is Changing The Way We Do Things Things Around Here

    Fewer bodies, more often.

    “UBS now performs rolling layoffs instead of going in rounds. Each mini-round is therefore less newsworthy. Normally this kind of thing destroys morale but there’s no morale left to destroy at this point. How frequent are they? Equities had 4 rounds in 3 weeks in April(ish). Previously you would see every group get hit at once, no more than a couple times a year.”

    / Sep 7, 2012 at 6:36 PM
  • News

    Layoffs Watch ’12: Deutsche Bank, Barclays, Nomura, Credit Suisse, UBS

    Things could be better in Europe.

    Big investment banks in Europe, including Nomura, Credit Suisse and UBS, are stepping up plans to cut jobs as they seek to adapt to a drastic slowdown in revenues and tighter regulation. Bank executives, headhunters and analysts say that the cuts are shaping up as the deepest since the start of the financial crisis after a disappointing summer dashed hopes of a business revival. One senior headhunter said many large investment banks will have “at least 20 per cent” fewer staff in capital markets and M&A advisory business in Europe by the end of the year compared with late 2011. “It [the market] has never been as bad as this. Bankers have long lost confidence in their banks but now they are also losing their self-confidence, their mojo,” a senior advisory banker said.

    Among the banks that will reduce their investment banking workforce is Japan’s Nomura, where London-based bankers say that they expect several hundred jobs to be removed in Europe alone as part of a $1bn cost-cutting effort. Switzerland’s largest bank UBS, which cut staff levels earlier than rivals by announcing 2,000 job cuts in the investment bank after a $2.3bn unauthorised trading loss last year, is preparing for intensified cuts as it is seeking to streamline further the unit, several people familiar with the situation said. At Credit Suisse, insiders estimate that the additional SFr1bn ($1bn) in groupwide cuts that were announced in July will translate into up to 1,000 jobs being lost, most of which would be in the investment bank. Analysts expect also Deutsche Bank and Barclays to reduce their headcount further this year. Deutsche said two months ago it would reduce staff levels by 1,900.

    Investment Banks Eye Europe Job Cuts [FT]

    / Sep 7, 2012 at 1:44 PM
  • News

    Layoffs Watch ’12: Morgan Stanley

    Employees within fixed income may need to find room at another inn.

    People inside Morgan Stanley are bracing for layoffs in the fixed income department. Sources inside Morgan Stanley say people within the fixed income business are expecting a dramatic downsizing of that business. They are not thinking about a total exit, maybe exiting certain parts of it, spinning those off if they can, but clearly a radical downsizing.

    MS Planning Layoffs [FBN]

    / Sep 6, 2012 at 5:41 PM
  • News

    Layoffs Watch ’12: Nomura

    Nomura is said to be encouraging people in equities to consider their options elsewhere but […]

    / Sep 6, 2012 at 3:18 PM
  • News

    Layoffs Watch ’12: Deutsche Bank Not Yet Finished Telling Employees To Hit The Bricks

    These things take time.

    Deutsche Bank is eliminating about 85 jobs at its Japan and Hong Kong equities units as Europe’s widening debt crisis curbs economic growth in Asia. The bank cut about 15 positions in Tokyo yesterday, and plans to tell 30 employees in equity research, sales and trading today that they will be dismissed, three people with knowledge of the matter said. The Frankfurt-based company trimmed 40 jobs in Hong Kong yesterday, according to another person, who asked not to be identified because the information is private.

    [Bloomberg]

    / Sep 5, 2012 at 2:47 PM
  • News

    Layoffs Watch ’12: Deutsche Bank

    The Germans are not yet done firing employees in Asia.

    Deutsche Bank fired around a third of the staff in its Asia equity derivatives business on Tuesday, as part of a global cost savings plan announced on July 31, according to sources familiar with the matter. Just over 20 people remain in the division, down from a number in the mid 30s, according to one source, as Deutsche Bank and others seek to cut costs in businesses that are failing to generate adequate revenues as the global economy slows. The bank let go five traders, four product structurers and at least one salesperson from the division, the sources said, adding that the numbers were not yet finalised because the discussions were continuing…These cuts follow on the heels of layoffs in June in Deutsche Bank’s Asian equities business, which like its counterparts at other firms globally has been struggling this summer due to slack trading volumes and a sharp decline in new share issuance.

    Deutsche Bank cuts a third of jobs in Asia equity derivs [Reuters]

    / Sep 4, 2012 at 1:44 PM
  • News

    Hire This Guy’s Wife And/Or Steal The Idea For Your Own Job Search

    As the results of a recent survey given to Harvard Business School’s Class of 1986 […]

    / Aug 31, 2012 at 3:11 PM
  • News

    Layoffs Watch ’12: Nomura

    The firm has big plans to “rebuild the investment bank from the ground up,” starting […]

    / Aug 27, 2012 at 1:53 PM
  • News

    Hiring/Layoffs Watch ’12: New York Good, London Bad

    Relatedly, Goldman is looking for some young bodies.

    Financial firms in London, besieged by Europe’s sovereign-debt crisis, probably will shrink their workforce this year, snapping a hiring rebound from 2008’s credit crisis as New York’s industry ekes out job growth. Banks, insurers and other financial-services firms may eliminate about 3,000 jobs across greater London as companies in the New York region add 9,000, according to U.K.-based researcher Oxford Economics Ltd. London’s proximity to the debt crisis is undermining the city’s efforts to gain on its trans-Atlantic rival. While Wall Street also is suffering from a global slowdown in trading and deal-making, North American banks are benefiting from a surge in consumer lending…Some large banks are offsetting senior-staff reductions by recruiting less-expensive workers. New York-based Goldman Sachs, seeking to cut $500 million of costs, expects its workforce to feature a greater proportion of junior employees by year-end, Chief Financial Officer David A. Viniar, 57, said July 17. “Wall Street is tilting toward younger, up-and-coming talent,” Kahn said.

    London Firings Seen Surging As Finance Firms Add Jobs In NY [Bloomberg]

    / Aug 17, 2012 at 2:21 PM
  • News

    Layoffs Watch ’12: Goldman Sachs

    The cuts aren’t said to be too significant but good luck telling that to the people who’ll no longer be receiving quality Cohn-crotch time.

    Goldman Sachs, the Wall Street bank that generated 58 percent of first-half revenue from sales and trading, eliminated 20 to 30 jobs in that division this week, according to a person briefed on the matter. The cuts affected salespeople and traders in the U.S., with most taking place in New York, said the person, who asked not to be identified because the reductions aren’t being announced publicly. The decision is part of a continuous review of staffing levels amid difficult markets, the person said.

    Goldman Sachs Said To Cut More Than 20 In Sales, Trading [Bloomberg]

    / Aug 15, 2012 at 11:48 AM
  • Opening Bell

    Layoffs Watch ’12: Morgan Stanley

    Morgan Stanley’s roadmap to the future involves fewer humans, more machines.

    In a move to repair its flagging bond-trading business, Morgan Stanley is scrambling to replace some of its well-paid bond traders with computers. The New York company is hiring programmers and technology specialists to help it trade bonds electronically and handle client orders in the hope of exploiting an expected shift in the way bonds and other fixed income products are traded. While the effort represents only a part of what the firm is doing to boost low returns in the business, the shift already has reduced the ranks of interest-rate and foreign-exchange traders on some desks by 10% to 20%. Morgan Stanley’s head of interest-rate trading, Glenn Hadden, has told colleagues in recent months and that the trading floor of the future will surround a few traders with the hum of powerful machines.

    Man vs. Machine At Morgan Stanley (WSJ)

    / Aug 9, 2012 at 10:41 AM
  • News

    Layoffs Watch ’12: Jefferies

    Cuts are said to have down at the best paid bank on Wall Street.

    “Significant layoffs at Jefferies yesterday, today and more to come in IB. Nine from industrials group alone. Cuts go from 1st yr analyst to SVP. Some groups (m&a, healthcare) still waiting to hear…”

    / Aug 1, 2012 at 4:59 PM
  • News

    Layoffs Watch ’12: UBS

    Cuts are said to be going down this morning in Stamford.

    From the front-lines:

    “So far affecting employees in cap markets. We’ve been hearing cuts were coming so I’d imagine there will be more through the day.”

    / Aug 1, 2012 at 11:54 AM
  • News

    Bonus/Layoffs Watch ’12: Barclays

    The juniorest of mistmakers have received their numbers (and a little perspective).

    “Barclays first year analyst bonuses: massive range, 20k-55k. Analysts got 20k, 25k, 35k, 40k, 45k, and 55k at top. Most groups are expecting cuts within the next few months so while some people are dissatisfied, most are just happy to have jobs.”

    / Jul 31, 2012 at 3:03 PM
  • News

    Layoffs Watch ’12: Deutsche Bank

    The Germans thought about it and decided yes, layoffs sound like a great idea.

    Deutsche Bank said it will eliminate 1,900 jobs, including 1,500 at the investment bank, as part of an effort to save 3 billion euros ($3.68 billion). Deutsche Bank, based in Frankfurt, forecast “substantial costs” to achieve the savings without giving a figure in a statement to the stock exchange today.

    The job reductions are part of a strategy review Anshu Jain and Juergen Fitschen, Deutsche Bank’s new co-chief executive officers, are conducting as the lender grapples with declining revenue from the investment bank, which reported a 63 percent decline in second-quarter earnings today…“The time for vague promises of cultural change in our industry is long gone,” Jain said on a conference call with analysts and reporters. Deutsche Bank’s leaders are “totally determined to act quickly and decisively.”

    Deutsche Bank To Cut 1,900 Jobs In Bid To Save EU3 Billion [Bloomberg]

    / Jul 31, 2012 at 10:25 AM
  • News

    Layoffs Watch ’12: Oppenheimer

    The firm is said to have released some of its young into the wild.

    Oppenheimer & Co. joined UBS today in laying off first year analysts two days before bonuses…

    / Jul 27, 2012 at 3:33 PM
  • News

    Layoffs Watch ’12: UBS

    Unfortunately-timed cuts are said to have gone down this morning.

    From the front lines:

    “Over 30 IBD analysts cut at UBS in New York today. 2 days before bonus announcements…”

    / Jul 24, 2012 at 1:17 PM
  • News

    Layoffs Watch ’12: Morgan Stanley

    The House of Gorman will be saying good-bye to a few thousand Little Jims before year-end.

    Chairman and Chief Executive James Gorman said the firm’s work force at year-end will fall 7% from 2011, reflecting previously announced layoffs as well as the firm’s efforts in applying “a high bar for replacing attrition.” The forecast implies a reduction of more than 4,000 jobs from the firm’s global headcount of 61,899 at Dec. 31. Last winter, Morgan Stanley announced 1,600 job cuts spread across its businesses, which was its largest such cutback since late 2008 and early 2009. The firm completed roughly 4% to 5% of those cuts in January and will complete an additional 2% to 3% by the end of 2012, a spokeswoman said.

    Morgan Stanley Expects 7& Cut In Its Workforce [WSJ]

    / Jul 19, 2012 at 12:59 PM
  • News

    Layoffs Watch ’12: Deutsche Bank

    The Germans are considering sending some bankers to live on a farm upstate, where there’s plenty of fresh air and room to run around.

    Europe’s biggest bank by assets, is considering cutting about 1,000 positions at its investment bank as revenue declines, according to a person with knowledge of the matter. The cuts will be mostly outside Germany, where the firm’s investment banking operations are focused, said the person, who asked not be identified as Deutsche Bank’s plan hasn’t been made public.

    [Bloomberg]

    / Jul 19, 2012 at 11:44 AM
  • News

    Layoffs Watch ’12: Bank Of America

    Project New BAC continues, only now that it’s worked out some of the initial kinks, management is going to fire people a lot faster that before.

    Chief Executive Officer Brian T. Moynihan, 52, is relying on expense cuts to improve profit as mortgage losses and regulation squeeze revenue. The earlier phase of his efficiency plan, called Project New BAC, targeted $5 billion in costs and 30,000 jobs…The lender had 275,460 employees at June 30, compared with 278,688 on March 31 and about 288,000 at the end of last year’s second quarter. The number of banking centers in the U.S. fell by 148 in the 12 months ended June 30 to 5,594…The new round of cost cuts will come at a faster rate than the first phase, Chief Financial Officer Bruce Thompson said today on the call. The $3 billion in savings will probably be realized at about $1 billion per year, he said. Moynihan told employees in January that he expected Project New BAC to eliminate a total of $6 billion to $8 billion a year in expenses, Bloomberg News reported. The bank said today it’s on track to realize $1 billion of the cost savings from the first phase by the end of this year.

    [Bloomberg]

    / Jul 18, 2012 at 4:07 PM