Can someone explain why the back office is always the first to be cut when budgets get tight? We’re the ones making sure the trades settle and the clients are happy, but we’re treated like an expense rather than an asset to the firm. It’s hard to feel part of the team when your department is constantly on the chopping block. Is there any way to insulate your role from these constant budget-cut cycles?

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I get what you mean, but front office definitely sees cuts as well. Banks are trying to reach certain efficiency ratios, seeing if they can obtain the same results while paying fewer employees. That can mean a cut anywhere, but can sometimes seem easier w/ back office cuts since an understaffed front office team that communicates with clients means unhappy clients. Obviously an understaffed back office team can also result in unhappy clients, but more indirectly. I’ve been in both front and back office, currently more of a middle office role, and no one at all feels safe from being laid off.

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The cruel reality is that financial institutions see retention of front office staff as maintenance of profit center. They tend to see back office as a cost center and would usually start to cut back office staffs during budget cuts. Of course, we all know the importance of back office support to their business models.

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Currently a Wealth Advisor for Citi but I honestly hate it here with a passion it’s the worst company I’ve ever worked for in my life and I’ve been in Wealth Management in the banking channel for over a decade. Series 7, Series 63, Life, CFP, ChFC, and soon to have my MBA with a focus in Mergers & Acquisitions. I’m look to enter another area of Finance at this point instead of starting over somewhere else from scratch, but not sure what direction to go. Interested in Investment Banking or M&A.

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