Monday, April 21, 2008

Layoff after layoff after layoff...will they ever end?

You've all been reading and hearing in the news of all the layoffs and projected layoffs that have been happening in the financial industry. These started happening pretty frequently last year and will be happening well into this year.

It's actually pretty hard to comprehend the numbers. I read an article which stated that since August of last year more than 38,000 jobs have been cut in the financial industry.

You have got to be kidding me!

Even close to home, here in the South, we've had Regions Bank laying off about 1,200 in the 16 states they operate in.

Globally, Citigroup is projecting that about 9,000 of their employees will be laid off and Bear Stearn's is projecting that about 14,000 of their employees will be out of a job. These numbers have been projected and announced just in the last month.

One group of people that you probably haven't heard much about is that group of 250 or so recent college graduates and interns that were made job offers by Bear Stearns only to find those job offers now rescinded.

Check out these two quotes from this article in NY Times...

Thousands of people are losing their jobs on Wall Street — some before their first day of work. They polished résumés; they sweated interviews; they landed dream jobs. But now a small group of college and business school students are discovering that their careers at Bear Stearns ended before they began. JPMorgan Chase, which bought the beleaguered investment bank last month, rescinded many of their job offers.

But instead of starting new jobs at Bear, these students are now hunting for work along with a growing number of bankers and brokers. Since August, the financial industry has shed more than 38,000 jobs as a result of the credit crisis and the collapse of Bear Stearns.
Citigroup added to the misery on Friday, saying it would eliminate 9,000 more jobs. No one thinks the pain will end there.

I know...layoffs are probably the quickest way to save a company and to immediately cut expenses but this message doesn't do anything for those that have been impacted. When it comes to stock price and value, a company basically has no choice when their main objective is to make money and increase the value of their stock.

What do you think about these companies that are putting their employees through this?

I found this clip of Citigroup employees that were just so proud just to be an employee of Citigroup. How many of these employees are still around today and do you think they still feel this way?


Anonymous said...

I had a contract job offer with CitiGroup rescinded 5 days before my start date. You've got these bozos making decisions like this after not properly thinking through things before putting people through the hiring process and getting their hopes up. They probably aren't even thinking about the people and families they affect.

Layoff said...

People always hate to talk about when they are laid off. But as it has become every day's news headline since Yahoo started it with cutting 1500 of its task force last year, now a need of platform has been in demand where people can express their selves in words how they are feeling about their company, whey the got laid off was that justified or not.
And every thing they want to tell anonymously.And is providing you that platform.

Elizabeth Johnston said...

The number one factor accounting for double-digit increases in the average length of unemployment is the reliance on job boards.