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Which agencies are going through layoffs
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You said consulting so I have to say
It depends.
Edit - 2 out of 3 answers below also say depends:-)
I had my highest utilization ever in 2008-10 as many companies were using consulting to figure out how to save money and reduce costs.
Depends on SL or area of expertise, but we'll know soon enough. For example I work in tax advisory, taxes aren't going away, I'm in a niche area, I'll be fine during this recession.
Yep just like in 08. This one will be worse tho
There will be a deflationary bust led by something breaking in the credit markets. You heard it here first. Check in by end of year next year.
Take care
I’ve worked for several firms through multiple economic cycles. First, your practice area’s performance is most important. If strong, there’s nothing to worry about; if weak, maybe start worrying. This is independent of the broad economy. It’s just that in a recession where clients cut back, more firms and practices are impacted. Second, consider your firm’s status as public vs private entity. Public firms maintain a much shorter leash by necessity. For me personally, I’m pretty worried
We know the exact answer because we saw this play out during the last economic crisis in spring 2020.
- They’ll stop giving bonuses in order to continue base pay and retain talent
- PPMD level will get drastic pay cuts in order to retain talent
- they’ll encourage employees to get on gov projects if the option exists
- gov account owners will subsidize commercial account owners so they stay solvent
- they’ll increase the threshold for letting people go for poor performance. Eg, letting go the lowest 3% instead of the lowest 1%
Just to put your mind at ease, we are in a very strong economy with no signs of layoffs ahead.
- we know layoffs are anecdotal because we have 3.5% unemployment. (2007 it was 5%….2008 it was 7.2%)
- we know that the labor market is red hot because of the robust hiring in the last job report
- we don’t have credit problems like we had in 2008 that spurred growth; we have the opposite problem: too much money, too much good credit. This is the entire reason the fed is trying to shut off the flow of money with rate hikes
- we know companies are healthy because it is earnings season, and Fortune 500 companies are exceeding revenue expectations
- we know banks are healthy because they are all exceeding earnings expectations
- corporate cash is at an all time high so we’re not worried about any financial collapses
- we are running government surpluses so there is excess money
- the latest jobs report shows payrolls and wages are rising
We are not in an environment conducive to layoffs
Rising Star
Depends, my firm thrived during COVID-19. (RSM) Tier 2 public accounting. We started poaching big four clients who wanted the same services at lower rates. My director hired a bunch of people mid covid because we were turning work away due to not having enough staff.
We’ve had some of our best years during “recessions” but there’s always a dip. We simply pivot focus from internal stuff to all BD. Sell like crazy, focus on selling high ROI work, watch the dollar signs go up.
Rising Star
First you have to provide consulting services for all those organizations looking at laying off people. Then, and if things are still going bad, you worry about layoffs.