Insight for Job Seekers as Layoffs Plague Wall Street
The collapse of Lehman Brothers, the fire sale purchase of Merrill Lynch by Bank of America, and the federal government’s $85 billion rescue loan for American International Group has triggered a tidal wave of panic that the financial crisis may be far from over…and there are more layoffs to come. New York’s financial industry this year had already laid off 49,340 people by late August, reports Reuters. Investment banks and brokerages there have shed about 9,300 jobs, or roughly 5% of their workforce, according to August’s figures from the New York State Department of Labor. Now that number is set to skyrocket. The Street will undoubtedly be flooded with people – all vying for fewer jobs.
For those who are currently out of a job… or soon will be… the outlook on Wall Street may seem bleak. But while investment banks struggle, some hedge funds are capitalizing on the chaos, reports the WSJ. Venture capitalists and start-ups, particularly in Silicon Valley, are also seeking to take advantage of the new pool of available talent. According to Mitch Feldman, President of executive search firm, A.E. Feldman, top talent will come out on top - despite the turmoil. “People might think it’s gloom and doom, but if there’s really cream talent around, companies will hire through the back door or the side door, even if they say the front door is closed,” says Feldman. Carol Schwam, the firm’s CEO, also notes there are ways professionals can prepare and position themselves to weather the storm.
Hedge Funds Scooping up Talent
Amid the credit crunch, hedge funds have been scooping up talent from banks, which have been plagued by layoffs, reports the WSJ.
Citadel Investment Group has hired two ex-Merrill Lynch executives to lead its efforts at capital development in Europe, the Middle East and Northern Africa, according to HedgeWorld. The WSJ also reports that Citadel also signed up Bill King from J.P. Morgan Chase, where he had been global co-head of securitized products.
GLG Partners, one of London’s largest hedge funds, has also poached two rising stars from Merrill Lynch, the latest in a stream of hires by hedge funds from investment banks, according to the WSJ. The report states that GLG has tapped Andrew Knott to manage the hedge fund’s global energy strategy and potentially set up a new energy fund, and Anthony Burton to co-manage an existing technology fund. GLG has brought in several other executives from large investment banks, including Goldman Sachs Group and Morgan Stanley.
VC Firms and Start Ups Looking to Hire
Venture capital firms and start ups may also take advantage of the current market conditions after years of big banks stealing smart people away. Although traditionally venture-backed start-ups can’t match Wall Street’s hefty compensation packages and bonuses, they do offer stock options and an alternative working environment.
How to Weather the Storm
A.E. Feldman’s CEO, Carol Schwam, says professionals who have been laid off, or fear they soon will be, can take action now to better position themselves to face this challenging and uncertain job market.
- “In times like these, one has to reinvent oneself. It’s either time to pursue your dreams, or leverage what you have and add to it,” says Schwam. That could mean additional courses or certifications.
- Resumes open doors, but interviews win jobs. Schwam says candidates should always be ready and armed with an updated and polished resume.
- If you’ve been laid off, networking is your new full time job. The majority of jobs are found through networking. Utilizing professional connections and personal relationships is essential – especially in this challenging economic environment. In fact, even passive job seeking is always part of an overall career management strategy.
- Burning bridges is never a good idea. Schwam advises candidates to keep in touch with people they have worked in the past. Former colleagues may end up working beside you again one day.
To inquire about existing and future job opportunities in finance, accounting, legal, IT, project and infrastructure finance, or energy and clean technologies, the lines of communication are open. Contact the A.E. Feldman’s President, Mitch Feldman and the firm’s expert recruiting team here.
