Do finance jobs get laid off?
Jan 31 (Reuters) - A handful of U.S. financial industry heavyweights are cutting jobs to sharpen focus on their core businesses and put themselves on an even keel, after pursuing aggressive growth during the low interest rate-era led to some overhiring.
Topline. January was one of the largest months for layoffs in almost 15 years, a new report by Challenger, Gray & Christmas said Thursday, as more than 82,000 people, largely in the technology and financial services sectors, were let go from their jobs.
Layoffs are most prevalent in the tech and financial sectors, with significant job cuts at Microsoft, Salesforce, Meta, and others. Even as these layoffs continue, the overall job market remains strong, with hiring still ongoing in various industries.
- Major US companies have laid off thousands of workers in a bid to improve efficiency and cut costs.
- Remote workers and middle managers are often more vulnerable to layoffs, experts say.
Who Usually Gets Laid Off First and When? Newer employees are at risk of getting laid off in the early round of downsizing, as the "last in, first out" saying goes. In some cases, recruiters and higher earners are let go as well.
Finance degree jobs can provide relatively high pay, stability, opportunities for advancement and consistent demand projections. Careers in finance may also offer flexibility for employees by allowing them to work remotely or in hybrid environments.
I tell candidates to hang tight for three years of quality, hard work, and demonstratable success (and track record) in their current roles before considering moving – especially if there are other short job tenures on their resumes. Employers dislike frequent job moves.
Patterns emerged during mass layoffs in 2023, showing that the departments deemed non-essential or that do not directly contribute to the core functions of the business are often the first to see cuts. It isn't about who necessarily, but what they offer to the company when pressed to make hard economic decisions.
- Health care. Medical professionals tend to be essential, and within health care, there are roles for just about every education and experience level. ...
- Public safety. ...
- Education. ...
- Law. ...
- Finance. ...
- Mental health. ...
- Utilities. ...
- Trade.
Who Is Most Likely to Get Laid Off? In most cases, the non-essential departments are most vulnerable.
Who is laying off in 2024?
Last year's job cuts weren't the end of layoffs. Further reductions have begun in 2024. Companies like Tesla, Google, Microsoft, Nike, and Amazon have announced plans for cuts this year. See the full list of corporations reducing their worker numbers in 2024.
Reduced demand for consulting and transaction services is cutting into profit, and the resulting drop in global revenue, is prompting some Big Four accounting firms to lay off partners, The Wall Street Journal reported. Partner layoffs are rare in the profession.
- Nurse practitioner.
- Statistician.
- Veterinary technologist and technician.
- Software developer.
- Information security analyst.
- Medical and health services manager.
- Physical therapist assistant.
- Occupational therapy assistant.
2 most safe: HR or finance employees. Those areas run quite lean in most companies. There is usually little excess to cut. In addition, HR is essential in the layoff process, and finance is often relied on as the financial status gets more scrutiny.
In addition to reviewing an employee's performance history, many companies also consider workers' potential to adapt and take on new jobs in the future. One CEO told me it's really down to a one-on-one assessment of performance in determining who you're going to keep.
| Industry and region | Levels (in thousands) | Rates(2) |
|---|---|---|
| Feb. 2023 | Nov. 2023 | |
| Construction | 171 | 2.1 |
| Manufacturing | 118 | 0.8 |
| Durable goods | 58 | 0.7 |
1. Investment Banker. Roles in investing banking are highly sought after. For investment bankers, it's often a higher competition to land a role in one of the largest firms.
What are the top 5 highest paying jobs? The top 5 highest paying jobs in finance are investment banking, hedge fund management, CFO roles, private equity, and actuarial positions. These careers typically offer substantial salaries and the potential for significant bonuses.
It's a bit counterintuitive to enter finance and then optimize for work / life balance, but there are some very comfortable finance jobs out there. It is entirely possible to earn >$300k and work <50 hours by your early 30s if you pick your spots right.
Ways You Can Benefit from a New Finance Career at 40
You have more life experience and knowledge that you can apply to your career. You may already have a lot of connections. As long as you're willing to learn, there is no limit to the work you can do. You're a trustworthy advisor to your younger colleagues.
Do finance jobs have good work life balance?
The finance industry is infamous for struggling to create a positive work/life balance because of its long hours and intensely competitive nature. Achieving work/life balance includes being proactive in requesting flexibility with work hours, remote work, and time.
You don't need an MBA to work in finance, but the field is highly competitive, especially at the entry-level. Internships offer experience, exposure, and a tryout for a full-time gig.
Data supplied to Fast Company from the firm shows that between 1993 and 2012, January was the month that saw the most layoffs. And since then, April and May tend to be the most popular months for layoffs, with April seeing a monthly average of more than 100,000 layoffs between 2013 and 2023.
It's December, which means more than just cooler weather and holiday celebrations. It's also layoffs season. Job cuts tend to spike in December and January as companies prepare for structural changes heading into the new year, as shown by data from the Bureau of Labor Statistics.
Monday is typically the day for mass layoffs to take place, with managers planning short 15-minute meetings with their impacted employees to inform them that they will be let go - this reduces rumors from spreading throughout the office, keeping it more private for everyone involved.
