Nobody is being laid off in Credit Suisse First Boston’s purchase of Donaldson Lufkin & Jenrette.
That may come as a surprise to those who have read that as many as 2,700 people may lose their jobs. But it should not surprise the people who are actually out on the street.
Until the CSFB-DLJ deal receives antitrust clearance, CSFB officials cannot tell any DLJ employees they do not have jobs. But what they can do is extend offers to the people who will be employed by the new merged organization.
That leaves the unlucky few to sit watching and waiting until all their colleagues have been offered jobs. When that happens they will likely call their supervisor, who will read a message to them from a pre-cleared script letting them know that they will probably not have a job in 90 days time, after the deal is consummated, and notifying them of their severance package.
What happens to those who are not bright enough to ask remains to be seen.
One person who doesn’t have to worry is DLJ CEO Joe Roby, who will become chairman of the new organization. He’s also guaranteed a payout of $84 million over the next six years.