Masters of the Universe will be firing Lords of the Universe to rein in costs. Big ticket items like luxury vehicles and trophy homes & condos will take a further hit as the Upper Middle Class and Upper Class who’ve just lost six and seven figure jobs are forced to cut back on their spending:
Financial Times headline: Cost cuts loom on Wall Street as balance of power with staff shifts
Sub-headlines: Big banks are preparing to rein in expenses after a marked change in conditions
Overall, investment banking fees are down 32 per cent at $61.7bn in the year to date compared with the same period a year ago, according to data from Refinitiv.
Goldman Sachs warned last week that it would reinstate annual performance reviews and start firing underperforming staff. Denis Coleman, Goldman’s chief financial officer, added that it would also “slow hiring velocity”.
Other banks, including JPMorgan Chase, Morgan Stanley, Citibank and Bank of America, are taking similar measures to facilitate lay-offs as they all prepare for worsening macroeconomic conditions.
And here’s the moneyshot last paragraph from this piece:
“The power has shifted from the employee to the employer,” said Mayo. “What took place over the last couple of years with employees saying they’re working too long hours, and they want extra perks and this and that, was an exception?.?.?.?that was a moment [that has] come and gone.”