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Jobs

Layoffs Hitting Harder In Private Equity (BX, ACAS)

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By Douglas A. McIntyre Updated Published
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Burning_money_picCerberus Capital Management was one of the top private equity firms any MBA graduate  would have wanted as their career destination.  But this week may mark another stark reminder that private equity is in decline  The Financial Times reported that Cerberus is set to cut about 10% of its workforce.

Cerberus is majority owner of automaker Chrysler, a company it probablywishes that it could give back.  The first reports put the company ascutting as much as 10% of its global workforce.  If Fiat’s deal withChrysler takes a full hold, then Cerberus may finally reduce itsmajority stake there.  Unfortunately, the Fiat deal involves no cashtransfers for Chrysler yet.

Other financial layoffs at private equity shops have come from TheBlackstone Group (NYSE: BX), American Capital Limited (NASDAQ: ACAS),Carlyle, 3i, and others.

After looking at past releases, the company has roughly 275 investmentand operating professionals.  But we do not have a fresh and currentback office and support count yet.

Jon C. Ogg
January 20, 2009

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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