Now that Meta is making what the Wall Street Journal describes as “the first significant staff reductions in the company’s 18-year history,” starting tomorrow, the pressure is moving away from investment banks. .
Not only is Meta unlikely to hire much in the future, as it cuts costs by 10% and looks at staff reductions to do so, but it won’t be able to offer the kind of benefits which have long been believed as investment banks treat their staff sparingly. The advantage will now be to have a job.
It’s the death of Meta benefits that people seem to be lamenting especially on Blind, the forum website popular with tech employees in Silicon Valley and beyond. “Meta has always led the market with above average compensation and insane employee benefits,” an Amazon employee wrote on Blind yesterday.The next players: Google, Amazon, Apple, Microsoft — just maintain the status quo and only 1/4 of companies provide free food to their employees.”
As a reminder, until March of this year, Meta benefits included a free shuttle to the office, free laundry service, free dry cleaning and valet parking, and free food – including dinners at 6 p.m. which allowed employees to take leftovers to eat at home. This generosity was in addition to a high salary: a full-stack software engineer with two years of experience at Facebook in San Francisco says he earns $205,000 on level.fyi.
Banks, by comparison, raised the salaries of their technologists but never matched Facebook-style non-monetaries. You could wear a hoodie as an engineer at Goldman Sachs in New York or play guitar and write on furniture in JPMorgan’s Manhattan West building, but you won’t be able to live without rent while you’re in the Office. .
Given that the banks have resisted for so long in their refusal to emulate Silicon Valley, they were always unlikely to succumb, but the wave of tech company layoffs now makes a rollout of benefits unthinkable. Layoffs.fyi says there have already been 100,000 job cuts at tech companies this year. Some of these people will now seek jobs in banks, where they receive salaries and bonuses if they are lucky – and pay for their own meals.
In the meantime, the folks at Blind lament that the tech-perk culture is over for the time being. “Until we see ridiculous venture capital money entering the tech arena again (unlikely for the next few years), we can say goodbye to crazy TCs and employee benefits,” the employee says. ‘Amazon. “All companies try to reduce costs on their balance sheets. “
Separately, times have also changed in the legal sector. Not so long ago, it was difficult to find junior lawyers to work on booming M&A deals. Now that M&A deals are no longer booming, junior lawyers are everywhere.
The Financial Times reports that Gunderson Dettmer, a Silicon Valley law firm known for its work helping tech companies go public, has asked its new partners to start in mid-January instead of October. Across the industry, hundreds of job postings have been taken down. The Thomson Reuters Institute says pprofitability in the legal sector is at its lowest level since 2006 and the implication is that significant staff reductions similar to those of 2008-2009 are necessary. Hundreds of jobs are already being cut, but not long ago law firms were in a frenzy, hiring staff and raising salaries.
British banks complain that Goldman Sachs and JPMorgan Chase uses customer deposits to fund risky business operations. The two US banks have been prevented from expanding their UK retail operations too much due to ring-fencing rules stating that once they get more £25bn of retail deposits, they must be separated from their investment banking arms. (FinancialTimes)
Tiger Global lost 5.4% last month and fell 54.6% this year. (Bloomberg)
It’s hard to be HSBC when your biggest shareholder has lost faith in your business model. “The global financial model that once dominated and shaped the global financial industry in the last century is no longer competitive.” (FinancialTimes)
UBS and Julius Baer have tried moving clients around the metaverse, but motion sickness has been a problem. (FinancialTimes)
What to say when someone asks you about your weaknesses in an interview. “Talk about particular challenges you’ve encountered in work environments and how you’ve overcome them and communicate what you see as challenges… “I’m looking for someone who feels confident to talk about what’s going on. he’s good at and what he’s not good at. It’s always a red flag when someone says, “I’m good at everything,” because that’s just not possible. The cup)
The bed is the best place to work. (WSJ)
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