Job cuts at Bear Stearns could exceed 10,000, bankers told Financial News. JP Morgan has begun writing to staff at the failed investment bank to inform them whether they have a new role or will be made redundant.
Sources close to the situation to FN, more than 70% of Bear Stearns 14,000 employees will lose their jobs in the next months as the bank begins the process of merging it with its own investment banking business.
Quote:
Bear Stearns Chief Executive Alan Schwartz, forced to sell the hobbled investment bank to JPMorgan Chase in his eleventh week on the job, has been invited to stay on as a senior dealmaker, a person familiar with the situation said.
EnergyTrader--Are you being facetious? I certainly think that's a GREAT deal. Noone wants to be displaced, but 9 mos (full pay) to go out and find other employement. Chase must know/believe they got one h**l of a deal, to offer all a package that size.
As a Bear employee in the US, I had to pipe up about this "9 months severance" issue....Bear employees are NOT getting 9 months severance across the board. The amount that employees were given, IN WRITING, is the 8 week "notification period", and then 4 weeks for each year of service. So, it is possible that some people will get 9 months severance (and some much more, if they have been with the company for 20-25 years), but the average worker, who has been there just a few years, will have about 3 months severance.
If an employee is asked to remain through the transition, then he or she would also receive a bulk amount of "stay pay" - now, this is a GREAT deal.
I don't know the law in other countries -maybe 9 months is the norm in Britain, where the article seems to have to originated from.
Also, the information I am providing here is what was given to the administrative and back office staff. Maybe the traders got some "special deal" that the rest of us are in the dark about.
I dont' work there so it's easy for me to say that I think it's a good deal, but even the update AnonBear sounds good to me. 1 yr. on Job and you get 2 mos. notice (start looking for something new) and another month's severance. Not great, but Chase seems to be taking better care of Bear and it's employees than Bear's management did. Anything beyond 1 yr. on job and it gets better and better. Again, I'm sure being laid off is less than an enjoyable experience, but they seem to be doing "right" by the employees. Best of luck to you all.
9 months is good, however - most Bear employees OWNED stock in the company. It was the only brokerage firm where employees OWNED a significantly large portion of the company.
So in some cases - 9 months is not enough, when you actually owned "in stock" - 500,000 or even Millions. $$$$.
9 months is good, however - most Bear employees OWNED stock in the company. It was the only brokerage firm where employees OWNED a significantly large portion of the company.
So in some cases - 9 months is not enough, when you actually owned "in stock" - 500,000 or even Millions. $$$$.
Good point, as well as the millions of other people that also owned stock in their companies. Some financial institutions match contributions with their own stock. I owned preferrred stock as well as stock within a 401k account that maxed out around 32.oo a share....it is now worth 5-6 bucks. Luckily I needed the money and cashed out. I put some down on a house and opened an IRA with what was left. I had to pay some penalties but I would have lost a ton more than I paid.
That is a huge loss for many. While I was talking to my Dad about all of it he said it reminded him of the late 70s and early 80s and a lot of companies left our city and they just simply took the pension with them. He had 20 years in.
Problem for many of those employees is good luck finding another job with 10,000 added now to the job search market...in an area that is highly expensive to life in and in a market that is tightening up...
Whatever package they receive or stocks they have it may not be enough to keep them afloat for very long..
Now imagine trying to sell your home to relocate...good luck...
I dont' work there so it's easy for me to say that I think it's a good deal, but even the update AnonBear sounds good to me. 1 yr. on Job and you get 2 mos. notice (start looking for something new) and another month's severance. Not great, but Chase seems to be taking better care of Bear and it's employees than Bear's management did. Anything beyond 1 yr. on job and it gets better and better. Again, I'm sure being laid off is less than an enjoyable experience, but they seem to be doing "right" by the employees. Best of luck to you all.
I have to agree in many respects! But, just to clarify, the 2 months notification period is mandated by the WARN Act, based upon the large number of employees effected, so Chase has no choice as far as that goes. It SEEMS like we are going to be treated well, but I must admit I am very jaded...I have been in this business for a long time and have seen A LOT. Don't know if I'll be laid off, but I have seen this "crisis" coming for a long time and have thus been living well below my means for a few years now. I didn't lose too much as far as the stock is concerned, but I know people who lost 20 years worth of nest egg.
View next topic View previous topic
You cannot post new topics in this forum You cannot reply to topics in this forum You cannot edit your posts in this forum You cannot delete your posts in this forum You cannot vote in polls in this forum
