For the past two years, New York-based investment bank Jefferies has been a beacon of hope in an often barren hiring landscape. Since the financial crisis, the firm has hired hundreds of employees, including stars from the bigger banks who had been dislodged during the malaise.
Fox Business Network reported that the firm has been making job reductions, mainly in equities, that may total about 11% of the firm's workforce. Headcount stood at around 3,800 at the end of the third quarter. Jefferies declined to comment.
The firm may just be experiencing the same pressures that have forced cost-cutting initiatives at other banks. Like other banks, it may want to simply upgrade existing talent. Moreover, Jefferies has been steadily adding to its Asian equities team over the past several months.
But a more serious situation may be at play. Since MF Global declared bankruptcy, Jefferies has been forced to disclose and defend its own European exposure. Chief Executive Richard Handler has even penned a letter arguing his firm is not a Corzine look-a-like. Still, its share price has plummeted.
Whether the disclosures will be enough to quell concerns remains to be seen. Some believe the firm is ripe for acquisition and will be sold to another bank.
Handler said earlier this year the firm would slow its hiring pace and that "a lot of people want to come work here -- more so than ever."
Bright Spot (Seeking Alpha)
Bank of America will hire 160 financial solutions advisors in Southern California and Arizona by the end of the first quarter 2012. The bank has already hired more than 1,000 FSAs across the country in the last year.
Eat, Drink and Be Festive (FINS)
Want to make an impression at the annual holiday party? Don't get too drunk, plan which higher-ups you'll zoom in on and always make nice with the boss's significant other.
Business As Usual (Financial News)
A recent spate of Goldman partner departures (such as Mark Machin, vice chairman in the Asia-Pacific region excluding Japan) has some speculating about the firm's cache. A new analysis shows that partner turnover has actually gone down in recent years. In other words, GS is still a place you want to be.
Missing Sanctuary (Business Standard)
Multinational banks may be expanding their teams in emerging markets, but individual units aren't immune from global cost-cutting plans. Nomura, Credit Suisse and Morgan Stanley are all shedding staff in India.
Not Taking Chances (WSJ)
Personal accountability seems to be a take-it-or-leave-it concept in the U.S., but the U.K. isn't joking around. A new government report proposes that bank executives and directors face penalties if their institutions end up failing.
Accountants Wanted (Going Concern)
Busy season is upon us and accounting firms are hiring to deal with the increased demand. KPMG is searching for experienced auditors who are happy to help out for the season.
Buzz Around the Office
List of the Day: Nine Inspiring Career Books
Nothing like a good read to get you motivated about your career. Here are some top picks:
1. Achieving the Good Life After 50: Tools and Resources for Making it Happen, by Renee Lee Rosenberg.
2. The Good Person Guidebook: Transforming Your Work & Personal Life, by Richard C. Bayer, Ph.D.
3. For Executives Only: Applying Business Techniques to Your Job Search, by Bill Belknap and Hélène Seiler.