By Kirstie McDermott
2023 wasn't the happiest year for workers in the financial services sector, as layoffs impacted across the industry. Global banks slashed more than 60,000 jobs, with Citigroup dropping 1,000 roles as well as outlining further plans to
Bank of America and Wells Fargo laid off between 2% and 5% of their workforces, and Goldman Sachs and Morgan Stanley cut more than 4,300 jobs too, with Goldman Sachs undertaking its biggest round of layoffs since 2008.
With dipping revenues and cuts coming as banks need to both improve the bottom line and correct pandemic-era over-hiring, workers can expect more job cuts this year too.
So, how do you know if a layoff is on the cards? While you may be the last to know, there are definitely some signs you can watch out for which will help you predict if your job may be at risk.
1. How is the company doing?
What do you know about the financial performance of the company? If you've noticed declining revenues, increasing costs, or shrinking profits, this can be a red flag that job cuts are on the way.
While your department might be doing fine, look further afield as poor performance by a specific division or department may give the c-suite cause to implement layoffs to reduce overall costs.
2. What's happening in the sector?
Industry trends can give you an insight as to where things are headed. Economic downturns or changes in the industry landscape often incentivize companies to downsize. If your employer is experiencing a downturn or facing increased competition, don't be too surprised if layoffs occur to streamline operations.
3. Are you hearing scuttlebut?
Often these can be unsubstantiated, but rumors and speculation tend to run riot among a workforce if job cuts are imminent. If you hear about restructuring, or a company takeover, this could indicate that management is considering workforce reductions.
Additionally, how is workplace morale? Increased stress, or a noticeable decrease in productivity could also be indicators.
4. Has the leadership team changed?
Is the CEO out and a new person in their place? Watch out for significant changes in leadership, such as a management team, as this could indicate a shift in strategic direction. And that might well result in layoffs as part of restructuring efforts.
5. Are costs being cut?
In addition to hiring freezes, you might notice nice-to-haves like free coffee and lunch or cocktail hour get-togethers being cut. Other benefits such as health insurance or company credit cards may also get axed. This can point towards reducing discretionary spending ahead of layoffs.
6. Are you seeing consultants around the office?
Companies often engage consulting firms for their expertise in solving issues, implementing processes or developing strategies for example. Others engage with consultants around the time of a restructure or ahead of layoffs to formulate a plan for progression.
If you have noticed, or been asked to meet with, consultants who have been hired in to assess how the company can be restructured or streamlined, this can be a warning sign that your own role may be in jeopardy.
If you recognise the signs above, then it may be time to put an insurance policy in place. Start your job hunt on the
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