Should I fear layoffs before even getting staffed as an experienced new joiner, or am I overthinking this?
I joined EY-Parthenon in NYC (Strategy, PE aligned) in mid October as a sr. Associate, coming from Europe, and have not yet been staffed (have been doing my best to network, but there just aren’t a lot of new engagements starting). I have 2 YOE with strategy consulting.
Look the reality is most people here were not employed the last time there was an actual major slowdown in deal flow (i.e., 2008) - everything since then has been relatively minor and short.
The reality is we’re about 10-15% down YTD (albeit from record highs) but planned for growth at ~20-30% and hired as such. This is the standard industry wide right now across firms. What that means is most companies are about 30-40% behind their targets.
Right now not a huge deal because of record profits and gains the last year plus - however if this keeps up its pretty obvious what will likely happen. Lots of weight that will be cut and as someone said, utilization and performance will be the key metrics
Isn’t TNR up 17% for the year. Sure it’s below plan of 25%, but definitely not down 10-15%. Utilization is only slightly below plan too, -2%.
I doubt we’ll need to make true cuts. Have other levers before that happens, reduce pace of hiring and counsel people out. It’s risky to contract too quickly, since ramping up is hard.
They won't lay you off since you just joined firm...
I definitely get your point. I just moved from Denmark where it is incredibly difficult to lay off anyone by law, and I’m still trying to grasp the American labor market
Chief
No
Dont fear the dark side
Rising Star
One friend to another, performance is the weapon of choice for ‘separation’ - contrary to what some may say. If utilization is muddy, it’ll be tough. Keep options open, externally.
No. Look, we all have access to the same data and know that the economy is adding jobs, the labor market is the tightest it’s been in 50 years, corporate profits are rising, and the stock market is rallying.
Every single one of these things would have to be opposite for you have to worry about layoffs.
Thanks. Being new to the US job market coming from Denmark, I’m still trying to understand the volatility
Layoffs generally start with proven poor performers, especially those at more senior levels. Once they clean house there, they will start looking elsewhere. I wouldn't worry as tons of campus hires just started and it's a struggle to get everyone assigned. Give it a couple months.
Thank you for your take on it. I’ve never been on the bench longer than a week, so I guess I just gotta be patient for now.
Did you do an internal transfer from eyp Europe?
No, I was with Monitor Deloitte in Denmark