The stark differences in employment law between the U.S. and the U.K. were on full display yesterday with news of layoffs within Barclays’ investment banking division.
Cuts will take place on both sides of the pond, but while U.K. investment bankers received word surrounding the timing of the layoffs, their U.S. brethren may have had to learn it from us.
Under U.K. law, large firms are required to undergo a consultation process, where they alert employees of impending layoffs through a formal review. Barclays did exactly that on Tuesday, notifying their 9,000 investment banking that their jobs may be on the line. The cuts should be announced in early February.
In the U.S., where employment is at-will, Barclays was eerily quiet. The firm declined to comment on an eFC report indicating that, as with the U.K. division, investment banking cuts in the U.S. will be accelerated.
This year, the layoffs in the U.S. will happen before performance reviews and bonus discussions, an employee with knowledge of the situation told eFC. The cuts will likely begin this week, according to the source.
It begs the question: Would you rather know your job is on the line, coming to work each day with a pit in your stomach, or be cut clean without any notice?
No Saving Alastair Ryan (eFinancialCareers)
Alastair Ryan, UBS’s co-head of European bank research for more than a decade, has reportedly left the bank.
Not Doing its JOBS (WSJ)
Less than 30% of investment bankers believe the JOBS Act is having a positive impact on the number of companies going public.
Back of the Line (eFinancialCareers)
“A number of firms” are considering scrapping bonuses for back office staff at investment banks, according to international banking compensation specialist McLagan.
Irreconcilable Differences (Bloomberg)
Mark Yusko, chief investment officer of the $3.5 billion Endowment Fund, has left the firm. While it is unclear whether he stepped down or was removed from his post, Yusko and the rest of management weren’t seeing eye-to-eye.
Locked Up (Reuters)
James Davis, the former chief financial officer of Stanford International Bank who helped the government build a case against his boss, Allen Stanford, received five years in prison for his role in the $7 billion Ponzi scheme.
Inflation Debate (The Telegraph)
Outgoing Bank of England Governor Mervyn King believes the nation should not abandon inflation targeting, although some flexibility may be required. King’s successor, current Bank of Canada Governor Mark Carney, has suggested that he may abandon the rigid 2% inflation target.
Market Conditions Improving (Bloomberg)
Investors, analysts and traders expect equities will offer the highest return in 2013, according to a survey. Bonds are expected to offer the worst returns.
Buzz Around the Office
The Past Never Forgets (MSN)
A Connecticut mother of two was pulled off a cruise ship in Florida and arrested after authorities discovered that she owed the state $85 for shoplifting cigarettes in 1991.
List of the Day: Time to Quit
Sometimes, it’s just time to move on, even without another job lined up. Here are three understandable reasons to give notice today.
- Your boss is verbally abusive.
- You haven’t been paid in weeks.
- You’re losing money with each pay check.