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Goldman Sachs to lay off close to 2,000
- Thread starter bigbadwolf
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It's seems to me that Goldman had many opened long positions on the Japanese market.
Anyway, the next year bonuses should not be what many bankers expect because of Japan.
US and UK continue to spend money (for example, war in Libya) to contribute to the New World Order.
Asia does not grow so fast as it may seems to be from newspapers,
only some countries like India and China, but still with a back-office economy.
The next trend may be Russia, but if they manage to integrate into European society,
and still it may take 10-20 years.
It's adequate to be pessimistic, especially when you work for IB - they are merciless.
Anyway, the next year bonuses should not be what many bankers expect because of Japan.
US and UK continue to spend money (for example, war in Libya) to contribute to the New World Order.
Asia does not grow so fast as it may seems to be from newspapers,
only some countries like India and China, but still with a back-office economy.
The next trend may be Russia, but if they manage to integrate into European society,
and still it may take 10-20 years.
It's adequate to be pessimistic, especially when you work for IB - they are merciless.
That's what I thought first when hearing this news. But the paradox is, hadn't other WS giants engaged in long positions in Japanese market? The same thing happened when in 2008 crisis Citi laid 2000 employees off. JP Morgan did the same (not sure for nu bers though). All the banks had trouble, but why does it happen that one bank foresees the opportunities of large gains in one market and others don't?!
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This sounds like their yearly firing of the bottom 5% of low performing ranks.
Looks like Goldman is firing about 1500 people. Nice job market.
In short, it sounds like Goldman is looking to unload some of its analysts and instead of pulling the ol' Donald Trump and hollering "you're fired!" (which would hardly fit Goldman's white shoe culture) they decided to get more creative.
Now before I tell you what exactly they did, I should clarify what an analyst is in this context for those that haven't had the pleasure of being one (alas, I have). Analysts are the lowest of the low in the investment banking world. They are typically recent university grads (undergrad) who do thankless work and labor an ungodly number of hours -- for, of course, a pretty hefty paycheck when compared to their non-investment banking friends. An investment banking analyst program typically lasts two years, at which point the analysts are expected to head off to get their MBA.
So Goldman management brought in these hapless youngsters and instead of telling them that they're being laid off, they're claiming that the analysts have been put in an "accelerated program" which, conveniently, ends in August.
http://theaveragejoeinvestor.blogspot.com/2008/06/goldman-sachs-firing-method.html
In short, it sounds like Goldman is looking to unload some of its analysts and instead of pulling the ol' Donald Trump and hollering "you're fired!" (which would hardly fit Goldman's white shoe culture) they decided to get more creative.
Now before I tell you what exactly they did, I should clarify what an analyst is in this context for those that haven't had the pleasure of being one (alas, I have). Analysts are the lowest of the low in the investment banking world. They are typically recent university grads (undergrad) who do thankless work and labor an ungodly number of hours -- for, of course, a pretty hefty paycheck when compared to their non-investment banking friends. An investment banking analyst program typically lasts two years, at which point the analysts are expected to head off to get their MBA.
So Goldman management brought in these hapless youngsters and instead of telling them that they're being laid off, they're claiming that the analysts have been put in an "accelerated program" which, conveniently, ends in August.
http://theaveragejoeinvestor.blogspot.com/2008/06/goldman-sachs-firing-method.html
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My brother is now 2nd year analyst at MS REPE and from what I from his friends (most of which also 1 year into their careers) there is no panic about layoffs whatsoever.
There were bonus complaints though as MS decided to give every first year the same bonus, which hurt my brother considerably as he performed well. Socialism doesn't go over well in these circles (and rightfully so).
Honestly I'm a bit puzzled as to why this is news - more than 5% of employees leave GS or any bulge bracket any given year, and nobody gets really "fired" from these jobs. The only way to become an "alumnus" without a job is if you refuse the career services or the job leads they give you upon leaving. (At least, that was my experience in consulting, and I'm under the impression that banking is just the same.)
There were bonus complaints though as MS decided to give every first year the same bonus, which hurt my brother considerably as he performed well. Socialism doesn't go over well in these circles (and rightfully so).
Honestly I'm a bit puzzled as to why this is news - more than 5% of employees leave GS or any bulge bracket any given year, and nobody gets really "fired" from these jobs. The only way to become an "alumnus" without a job is if you refuse the career services or the job leads they give you upon leaving. (At least, that was my experience in consulting, and I'm under the impression that banking is just the same.)
Yeah, most people don't do more than two years in banking. With that said, GS has a culture that likes to keep analysts for internal associate promotions. I wouldn't look to much into this news. Once you officially work for GS you are golden when it comes to looking for other jobs.
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They get out without another job lined up?
Do you have information regarding the employees being laid off from Citigroup in 2008?!- Some of them really got back. I know few. Some didn't and moved to another firm. The rest couldn't even find related job. But I agree with you. Firms firing employees make efforts to compensate them with severance packages or reemploying them again some time later, or promote them to another banks. The last occasion was with one of my university graduate, when he got fired due to lack of experience, the firm promoted her to another bank with unrelated job though.
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Welcome to Wall Street, the capital of capitalism.
When I think about it, high finance may be the industry with almost nonexistent job security. The environment is cut throat so it may not be for any Jack or Jill who got straight As in math. There is no union or such so when you are laid off, the support system is rather poor.
The best time to find another job is when you still have your current job. It's never truer with that saying. Or stop being an employee and become your own boss.
When I think about it, high finance may be the industry with almost nonexistent job security. The environment is cut throat so it may not be for any Jack or Jill who got straight As in math. There is no union or such so when you are laid off, the support system is rather poor.
The best time to find another job is when you still have your current job. It's never truer with that saying. Or stop being an employee and become your own boss.
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PJ,
Your bank probably is not one of the Wall Street US banks. As an ex-employee, you are not going to have access to anything. Period.
That only makes sense since ex-Goldmanites will end up at Morgan Stanley and vice versa. When your last day at the bank is up, you have 30 minutes to clean up your desk and security will escort you out of the door.
Your bank probably is not one of the Wall Street US banks. As an ex-employee, you are not going to have access to anything. Period.
That only makes sense since ex-Goldmanites will end up at Morgan Stanley and vice versa. When your last day at the bank is up, you have 30 minutes to clean up your desk and security will escort you out of the door.
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I second that.
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