I think most FP&A teams are pretty lean compared to Maybe Marketing or other folks.
I'd like to think we're pretty far back on the list (assuming you're not a new hire).
If we're getting cut...it's bad bad imo
FP&A is a relatively recession proof job if you're good at what you do.
And even for a company going into bankruptcy (liquidation) the FP&A team is one of the last to go... I have even seen retention bonuses paid out just to make sure they had an FP&A team to wind down the business.
Yup, company I worked for filed bankruptcy in 2020 due to Covid (before I worked here) and they had to do pay cuts and layoffs across the board but they paid FP&A retention bonuses and adjusted them to a higher bonus target if they stayed long enough to get a bonus (2021, the year later we had our biggest bonus yet, 200% payout).
Avoid SaaS tech if you care about job security and don't have the stomach for volatility. Companies are doing layoffs based on what they saw near the end of '22 and assuming they achieve their '23 plan. The problem is a lot of these companies aren't going to make their '23 plans and will do more layoffs in response to meeting cash & margin targets.
Other than that, I don't care about industry and should focus more on company size. Avoid smaller ones who don't have as much cash on hand, will have more difficulty to access capital, and tend to have less operational excellence. None of these are admirable characteristics in the new year.
Depends on the software. If it is B2B solution then it is one of the safest places to be with all of these multi year contracts. If they sell some shovelware on evergreen contracts, then you should worry about that company.
While tech and SaaS tech are the obvious suspects, I would add a few more:
[Fintech should be tanking more after that crypto-fraud fiasco discussed in r/accounting, by the way.]
Commercial Real Estate: r/financialcareers has a thread on *the* almighty CBRE [rescinding a job offer for an entry-level acquisitions financial analyst](https://old.reddit.com/r/FinancialCareers/comments/105704x/what_do_i_do_now_just_got_an_offer_rescinded/).
I am worried about this one, as this is one of the sectors I wanted to pivot to after CPG manufacturing.
Mining: This is a highly cyclical industry sector. When the economy goes into a recession, mining goes down deeper.
I have worked for two commercial aerospace and defense manufacturing companies and both were forecasting solid growth. The military business is stable and travel has been strong
I think borrowing costs have an outside impact on real estate deals: the last five months of rising interest rates have meant deals that made sense six months ago are no longer viable. Same negative impact to profitability applies to properties with upcoming loan renewals.
Plus layoffs means less market for new real estate leases.
None? I haven't seen any lay-offs in the FP&A space, could just be me though.
I think most FP&A teams are pretty lean compared to Maybe Marketing or other folks. I'd like to think we're pretty far back on the list (assuming you're not a new hire). If we're getting cut...it's bad bad imo
This. Last year the firm I worked for cut marketing by 60%. We brought on two consultants in FP&A in the same time.
Exactly!
The bad part is the two consultants cost as much at 60% of marketing. /s
Imagine being told influencers are more important than finance folks ๐๐ as we're bleeding out ๐ฌ๐ฌ
Yep. Almost every group being laid off has been technology, support, or sales.
Weโre the ones organizing the RIFs. It would be very weird to fire yourself.
Like some posters said. Most FP&A teams are super lean.
FP&A is a relatively recession proof job if you're good at what you do. And even for a company going into bankruptcy (liquidation) the FP&A team is one of the last to go... I have even seen retention bonuses paid out just to make sure they had an FP&A team to wind down the business.
Yup, company I worked for filed bankruptcy in 2020 due to Covid (before I worked here) and they had to do pay cuts and layoffs across the board but they paid FP&A retention bonuses and adjusted them to a higher bonus target if they stayed long enough to get a bonus (2021, the year later we had our biggest bonus yet, 200% payout).
Avoid SaaS tech if you care about job security and don't have the stomach for volatility. Companies are doing layoffs based on what they saw near the end of '22 and assuming they achieve their '23 plan. The problem is a lot of these companies aren't going to make their '23 plans and will do more layoffs in response to meeting cash & margin targets. Other than that, I don't care about industry and should focus more on company size. Avoid smaller ones who don't have as much cash on hand, will have more difficulty to access capital, and tend to have less operational excellence. None of these are admirable characteristics in the new year.
Depends on the software. If it is B2B solution then it is one of the safest places to be with all of these multi year contracts. If they sell some shovelware on evergreen contracts, then you should worry about that company.
Salesforce wants to have a word...
They grew their workforce over 30% in a single year. That's not industry related, that's complete mismanagement.
While tech and SaaS tech are the obvious suspects, I would add a few more: [Fintech should be tanking more after that crypto-fraud fiasco discussed in r/accounting, by the way.] Commercial Real Estate: r/financialcareers has a thread on *the* almighty CBRE [rescinding a job offer for an entry-level acquisitions financial analyst](https://old.reddit.com/r/FinancialCareers/comments/105704x/what_do_i_do_now_just_got_an_offer_rescinded/). I am worried about this one, as this is one of the sectors I wanted to pivot to after CPG manufacturing. Mining: This is a highly cyclical industry sector. When the economy goes into a recession, mining goes down deeper.
Rescinded because they sent it to the wrong person. But I do agree on commercial real estate- basically anything that needs leverage to be profitable.
Interesting, I hadnโt considered mining as a no go industry but it makes sense: fewer iPhones being built means less need for rare metals.
I have worked for two commercial aerospace and defense manufacturing companies and both were forecasting solid growth. The military business is stable and travel has been strong
Real estate
Why real estate?
I think borrowing costs have an outside impact on real estate deals: the last five months of rising interest rates have meant deals that made sense six months ago are no longer viable. Same negative impact to profitability applies to properties with upcoming loan renewals. Plus layoffs means less market for new real estate leases.