Financial Services Meltdown — Merrill, and Lehman, and Bear, Oh My!
Financial services headhunters are going to be VERY busy this week as resumes start flying in response to the news that Lehman Brothers is teetering on the verge of bankruptcy and Merrill Lynch is about to be acquired by Bank of America.
A Reuters article this morning quotes employment experts who predict that recent developments could lead to a loss of up to 50,000 more jobs in the financial services sector. “The golden years of compensation in the financial services industry are over, and it doesn’t help with the Bear Stearns people still looking for work,” said Michael Karp, chief executive at executive search and consulting firm Options Group in New York.
The Lehman and Merrill headlines are just the latest reminders that there is no such thing as job security anymore (as if we needed or wanted another reminder). Even the most seemingly-stable job at the biggest company can disappear.
The experts are advising downsized financial services professionals to look for opportunities on the buy side, at smaller firms, and in overseas markets like Russia and the Middle East. And if you were in financial services primarily for the money or the “stability,” now might be a good time to start investigating alternate career paths.
It’s a stressful time for those working in financial services. I know what it’s like from personal experience. I have worked through countless layoffs, mergers, acquisitions, and reorganizations in the finance sector (and I only got laid off twice). I once even clung to my job while a 200-year-old global investment bank crashed and burned because of a rogue trader. I can tell you that the turmoil will eventually pass.
But below are links to some previous posts that might be useful for anyone currently feeling stressed out by the threat of impending layoffs:
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My name is Pamela Skillings and I'm an author and career coach.
Mark McClure Coaching
Pam, “This too shall pass” probably applies to yet another boom and bust party but I think ordinary folks who end up still employed on whatever Wall Street morphs into will be living on smaller net incomes if the bonus culture evaporates (or is fried by regulation.)
You would be surprised (not?) how personal expenditures rose to meet available income while times were good.
Chris Vandecar
This certainly is a lesson on being open to new possibilities. Your mention of opportunities in overseas markets is one we have secondary experience with and are considering ourselves. My husband’s college roommate, formerly a teacher, is now an at-home-dad in their new home in Shanghai. This, as a result, when his wife was encouraged to relocate there, or lose her job. Despite the unexpected change in their life plans, they are really enjoying this new experience, and it has become a great business opportunity for her. I just read another relevant article on w2wlink.com, Countering the Myths of Working Abroad, by Stacie Nevadomski Berdan (http://www.w2wlink.com/Articles/Countering-Myths-Working-Abroad-Part-artid260.aspx). Thanks for encouraging all of us to look for opportunities within this financial market crisis.