Aug 29, 2007

Barclay Ensures That EquiFirst Has Viable Future

In a Reuters interview with reprter Jonathan Stempel, company spokesperson Jennifer Sharpe, stated that the companies plan for lay offs “will help to ensure EquiFirst has a viable future”.
Also from the article: “EquiFirst, based in Charlotte, North Carolina, employed about 1,400 people before the latest cuts.”

Since the company is not in the talkative mood, SockPuppet posted this on the grapevine at Broker Universe almost two weeks ago on August 15, 2007:

“EquiFirst is getting ready to cut off the bottom 10-20% of its sales force. ELT (leadership team for those of you outside of building 5) may think this is a well guarded secret but everyone seems to know its coming. I've heard layoffs in ops are certain to follow.”

Adam Smith added to the tread:
“As someone who has gone through product cuts, then ops cuts, I can tell you the worse is yet to come (especially in service): double number of AE´s on an AM´s desk, 1 less person in file setup, 1 less person in broker setup, 1 less u/w etc. It will be painful, not as rosy as you picture it. Volume will be less, but it will feel like triple because there is no support. Plus, morale will drop because everyone will be worried about their jobs (I think you had ads that said you never had a layoff-now the security is gone) and u/w will kill more than approve loans because they to will be worried about keeping their jobs. Files you once got an exception will be a thing of the past."

“Also, if it has not happened by now, I would expect your products to start falling off the matrix weekly (I believe you guys sell alot to Citi and Citi just got hammered for all the subprime they have on their books).”“Lastly, if this is the first time layoffs have occurred, expect many more to follow. I know of many lenders that are on their 3rd round of cuts (AE´s and ops)”

“Anyway, good luck, and welcome to 2007.”