Amid the growing concerns of a recession, many industries are finding themselves impacted by significant job cuts. Recently, higher-paid, white collar banking and finance employees have been on the receiving end of these financial firm layoff announcements. The financial services industry has recently announced a wave of thousands of job cuts given the slowing economy and warns they may continue to come. This comes after more than 24,000 jobs were cut last year, a whopping 127% increase compared with 10,784 job losses in 2021.
Financial firm layoffs can be seen in the lending and credit sectors as well as the investment banking divisions. Top names in the industry such as Citigroup, Morgan Stanley, Goldman Sachs, and Deutsche Bank have all announced significant cuts or hiring freezes as dealmaking slows. More financial firm layoffs can be expected with the continued concern of a recession, especially after many companies over-hired during a post-pandemic reopening. The aggressive rate hike by the Federal Reserve intended to combat inflation has also directly impacted these layoffs.
As we could still be in the early stages of job cuts in these interest rate sensitive sectors, it’s important to know how to navigate what a termination could mean for you. Due to these widespread layoffs, many firms are offering several forms of severance packages and payouts. However, before blindly accepting and signing these severance agreements, it is important to carefully review them, since many severance or separation agreements require you to release any claims against your employer – meaning once you sign, you can no longer sue, even if you feel you are still owed money. There are many things to consider before finalizing your severance offer including but not limited to:
• Deferred Compensation
• Overtime Pay
• Accrued Vacation Time
• Retirement, pensions and stock
• Medical insurance
An employment attorney can help you better understand the terms of your offer and make sure everything that is rightfully owed to you is included in the agreement. Negotiations of severance or separation packages is not uncommon, so if you have any questions or concerns about what has been offered to you amidst your layoff, know that you have the right to discuss the terms of your separation agreement with your employer. Our firm, Fitapelli & Schaffer, LLP, can help you review your severance package and help navigate your financial firm layoff. You can reach us at (212) 300-0375. Also, feel free to view our website here for helpful information regarding your rights when it comes to workplace terminations.