So, genuinely curious to see what people think here …

My firm has laid off essentially half of the M&A group since Q4 2023. Now the few remaining associates are billing like 300 hours a month (while the firm is historically very slow) and they know that things are going to be completely out of control once PE work comes back to life. There’s not going to be enough people to do the work, and the firm is going to be competing with everyone else to hire once the market comes back.

Survivors are pissed. Survivors are already quitting or interviewing. Morale is terrible. I was laid off. I’m pissed. It feels like this was a stupid, selfish managerial decision and it’s screwing lots of people over. Lol.

Why do firms do this? Feels very short-term profits oriented at the expense of the health of the firm just a few months down the line. Lol. And laying people off is not cheap, so … seems dumb. 🤷‍♂️