Posted on 06/09/2020 6:24:48 PM PDT by fluorescence
Billionaire bond investor Jeffrey Gundlach, the CEO of $135 billion DoubleLine Capital, sees the potential for a "wave of more higher-end unemployment' hitting white-collar workers making more than $100,000 per year as employers increasingly question the value these employees bring.
In 11 weeks, more than 42 million Americans filed for unemployment insurance as the COVID-19 pandemic wrecked the economy. The bulk of these job losses hit lower-income households the hardest.
"A lot of times it's not the earthquake, it's the fire," Gundlach said on a webcast for the DoubleLine Total Return Bond Fund (DBLTX), later adding that he could "easily see layoffs in various industries" affecting higher earners.
Gundlach, who runs the Los Angeles-based bond investment firm, explained that one of the outcomes of remote work is it reveals who produces and who doesn't.
"What people may have learned for white-collar services jobs, in particular, during the work-from-home lockdown situation, at least in my perspective — I've talked to a lot of my peers on this — I kind of learned who was really doing the work and who was not really doing as much work as it looked like on paper that they might have been doing," Gundlach said.
He's witnessed this at DoubleLine, where people running "certain groups" haven't been as responsive, while the more junior members on their team have stepped up.
"I wonder where they've gone. It seems like the people who work for them are constantly in contact with me doing all this work and some of the supervisory, middle management people I'm starting to wonder if I really need them. And this is just a one sample thing," he added.
(Excerpt) Read more at finance.yahoo.com ...
Bkm
Fixed for the coming reality.
producers only produce because thinkers think
Thinkers think because of years of accumulated knowledge
years of accumulated knowledge create a competitive environment
competitive environments create a need for producers
” Jeffrey Gundlach, the CEO of $135 billion DoubleLine Capital”
“I kind of learned who was really doing the work and who was not really doing as much work as it looked like on paper that they might have been doing,” Gundlach said.
I dunno, Jeffrey. What do CEOs do, exactly? Are they the “producers” in the company? Are they worth it?
It seems like the people who work for them (middle mgt) are constantly in contact with me doing all this work and some of the supervisory, middle management people I’m starting to wonder if I really need them. And this is just a one sample thing,” he added.
There are too many freeloaders in companies and not enough “doers.”
This is true of the place I work and at least four places my wife has recently worked.
People in visible roles, such as product or marketing, are not much more than drinkers who have a chair in the building. They despise people who provide valid numbers or arguments, because they don’t like anything that runs counter to the fake “amazing” things they claim or promise.
Like.
What, me worry? The Fed is bailing out the bankrupt mega-corporations and the stonks keep going up in a V-shaped recovery! Carry on!
Yet the idiot PHB type finds a way to survive in most cases.
LOL, the two Bobs from the movie “Office Space”, trying to determined who does what and which employees are truly essential.
I think many of us can identify with an office in which some people are less productive than other people, or some may be part of a non-essential layer of management that has developed within a company.
This is not surprising. My wife and I have had this discussion. I’m guessing it is going to hit the tech world hard. They pay crazy salaries to a lot of people who don’t produce much. My nephew makes a low six figure income, but admits that between projects, which is often, him and his buds play a lot of video games. I could see him being one of the victims of this. I’ve worked in a number of office in the past and I can attest to the facts that most companies are heavily over employed and could so better hiring contractors when needed rather than having cull time employees hanging around the water fountain.
IMHO, a lot of gvt jobs could be cut and the result would be negligible, a good thing.
I think the nobama administration really stuffed the gvt workforce with below grade people. These folks making 100K+ need to be gone.
“What do CEOs do, exactly?”
Sit on each others’ boards and approve each others’ salaries.
“one of the outcomes of remote work is it reveals who produces and who doesn’t.”
Very true. Reminds me of a line from Yes Minister, “lots of activity but no actual achievement”. There are people at work who look busy all the time- going in and out of meetings all day carrying laptop in hand, scheduling more meetings when they are out of meetings, checking messages/ replying to messages _during_ meetings... and you have to wonder- what do they actually produce? Would the company stop functioning without them ?
Perfectly stated.
my tag line, yes?
I thought I was in a rerun of the ‘80’s for a minute. Word for word this article could have been written then.
Just change the $100,000 to $60,000.
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