We are currently in a time transition……
During tough economic times, Wall Street favors companies that are able to cut costs, and the fastest way to “cut costs” is to eliminate employees. After a period of relative stability, the employment picture in the big financial firms is volatile.
Firms that held strong during the crisis of 2008-2010 are looking to right their ship once again in order to care-on for the future. We have all heard of the ongoing layoffs at firms we thought were stable once again:
Goldman Sachs and Morgan Stanley have announced plans to eliminate hundreds of employees, UBS and Credit Suisse are reportedly preparing to cut thousands of jobs and Barclays Capital has already imposed two rounds of layoffs this year. Firms like Liquidnet & ITG are struggling to produce a new value add to the financial houses that 2 years ago paid heavily to use their services. Firms like JPM are evolving from targeted layoffs and hiring simultaneously.
From a Stock point of view
Ø CitiGroup, (Shares in Citigroup fell 2.5 percent last Monday)
Ø Goldman Sachs & Morgan Stanley, (Shares of Goldman Sachs and Morgan Stanley are near two year lows.)
Ø Bank of America, (Bank of America hit a 52 week low last Monday. Bank of America shares declined 4 percent to $9.61. So far this year, Bank of America stock is down about 27 percent. Bloomberg is reporting that Bank of America may be forced to increase its capital cushion by 50 billion dollars.)
So where does one take their career for security and mobility?
We at TechExec, are seeing a time of great growth and opportunity with many of the smaller financial houses. Some of our most senior hirers are within the such as
Ø Lava Trading,
Ø Millennium Partners,
Ø BridgeWater Associates,
Ø 2Sigma Investments,
Ø Royal Bank of Canada,
as well as firms focused in the Electronic Trade Confirmation, Electronic Market Maker and Purpose-built Trading Analytic Tool shops.
Our outlook for the next 3 quarters is simple, BIGGER isn’t BETTER. Bonus Pools will be drastically down this year for many of the firms listed in the first part of this blog. Hiring is spotty at best within these firms and layoffs are looming. Most of the talent on Wall Street missed the hiring frenzy of late 2010 and Spring 2011…. That being said, now is still time to think about advancing your career. You have been undercover at your current shop for the last 2 years… Now is the time to be proactive, but be methodical. Leaving one Mega Firm for another is Perilous….
ü Think Big, but GO Small!!!!
ü Think Rounding your skill Set,
ü Think increasing your marketability.
ü Think of calling me, Tracey Greene…… “Recruiter to the stars!”
I am always just a PHONE CALL AWAY,
Senior Vice President, Financial Risk & Compliance & Technology Division
F: (914)-355 -2160