There seem to be layoffs spreading across the financial services.... especially asset management and custody space (State Street, Fidelity, BlackRock, Vanguard, Schwab, Citi, Morgan Stanley). I’m curious whether this is mostly cyclical or tied to longer-term structural shifts. What do you think are the main reasons?
19 replies (most recent on top)
@hs
can't these folks create their own companies
this seems odd
@1k3
it is happening everywhere
meanwhile the US debt skyrockets
also these corps are rotting from within
i can't see how this ends in anything but a collapse
Regarding what are the reasons, here's what a current Citi employee wrote on:
https://www.thelayoff.com/t/1kgmp2a6f?reply=%40bc%2B1kgmp2a6f%20#comment_form
"This only stop if you unionize or complain to Senators, Media and whatever tools you can use. Don't delay! Do right now!
Citi is quietly doing layoffs without much noise like Amazon or Microsoft. They are not in news much.
The government must look into the fake internal job postings, promotions for favorite candidates, and immigration visa abuse. Citi is notorious for replacing American workers with H1B, L1 TN, OPT, H4 EAD candidates.
They hire in India, Ireland, Poland, Costa Rica Singapore, and their last option is hiring in the USA.
Most of the Indian managers are racists and they discriminate other south asians based on caste and culture. It's a absolute disgrace to the America.
Citi HR and Ethics teams are a joke!
They will hire overseas and make them rich and show layoffs in the USA to bump up the stock!
The only strategy is lay off people and get more bonuses! This cannot survive for long."
The very higher up executives make their money through the stock options they receive.
Stock options are far more valuable than the basic pay raise.
But I would say some of the raises/bonuses the higher up executives receive sometimes
equal the average worker's salary.
Greed is the main reason. Perhaps you should check your leaders salary increase he gave to himself and other high ups that don’t deserve it. It is public information to look up Rons salary increase and the people that got millions in bumps while loyal people were cut! You can only be in one car one house and one boat at a time.
I remember during the glory days of the 1970 to 2000yr.
When people could start out at the bottom and climb the job ladder.
When the company gave workers good benefits, good raises and bonuses.
Where the employee moral was very high and everyone gave 150%+++++ when working.
Then around the year 2000yr Bean counters came and their job was to cut cost through any means.
That started the trend of yearly layoffs
Small raises and bonuses .
Going 2 to 3 years with no raises or bonuses
Outsourcing work and bringing in Temp workers
Then adding salt to the employee moral by brining in H1B workers and forcing U.S workers to train them.
The funny thing is a lot of useless Vp's Svp's and higher were kept at the company.
@k4 there own brains? But honestly to get to their levels, it’s not their brains that got them in it. It’s their politicking, brown nosing, taking other people’s work and presenting in as their own and caring more about their bonus and what they’re presenting up line to encourage their own promotions through expense cutting that is not good for the community, not good for the employees and not good for the clients. Some of the top leaders are the most unethical we’ve got. And they’re all weak actually at getting things specifically done. Half of them can’t even open a freaking spreadsheet. Or log into the internal systems. So what I actually suggest is that they listen to the people underneath them. They know what’s going on. They know what the clients need. But they’re too arrogant and smarty to think that there’s other people smarter than them below them. But there are.
And yes, I do think the government should control how much American companies that are holding and servicing and managing Americans assets should not be touched and led by 80% of foreign workers.
@hy Do I understand you correctly that you suggest the American government should forbid the American companies to outsource the work to other countries? If yes, this does not seem economically sound.
@k1 You suggest for the companies not to take suggestions from parasitic consulting firms. Certainly makes sense. What do you propose? Whose advice to take if any?
@jn I don’t really have an inside track to President Trump. Does anyone else here? I have tried to send messages through Instagram to K Leavitt. But I’m sure she doesn’t read them now that she’s his press secretary and pretty famous. But if anyone has a way to get through to him, he should be informed.
The reasons are corporate greed and companies taking suggestions from parasitic consulting firms.
Board and execs: How can we increase profits?
Consulting firms: This is what we did for Company A (presents PowerPoint deck showing workforce reduction and outsourcing info)
Board and execs: Cmon, you can do better! My son needs a matching yacht like mines.
Consulting firms: This is what we did for Company B (update same PowerPoint deck but with inflated numbers)
Board and execs: Much better! When can you start?
@hy Maybe you are right about Trump's reaction in this case. Do you have any practical suggestions about how to address this situation?
@hs yes I do think that a company that is headquartered here in America that holds predominantly assets of Americans should hire mostly Americans. Now skin color and ethnicity has absolutely nothing to do with it, but our government allowing our American companies (especially banks/investment servicing providers ) to outsource the work and wealth generated from employment to other countries is absolutely nuts. I don’t like Trump, but if he knew about how bad this is, I think he would be pretty pi---d off.
@en Do you think a company should retain current white American/European employees if they can be replaced by skilled workers from low cost locations? Note that I am not talking about replacing by not-skilled-enough workers. Do you think it's really hard to find skilled substitutes in low cost locations all over the world? I don't think so.
the losers here are the white americans/europeans.
agree with @cg
It's not just financial services. Look at tech for an example. It's been a blood bath in that industry for years. If you sit behind a computer and do basic tasks, your job will eventually be obsolete.
Greed.
- Lower human costs by replacing Americans with lesser H1Bs.
- Lower human costs by outright firing Americans.
@OP I think the main (and obvious) 2 reasons are the gradual productivity enhancement (primarily due to the use of AI and new technology) and availability of outsourcing to cheaper workforce locations. These aren't cyclical. The layoffs may come in strides and thus look cyclical.