Will there be any Arthur J. Gallagher Layoffs 2021? Any news or rumors?
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Houston had another layoff today. Guess the above person was dead on. It was the #1 service person on the "hospitality, gaming and restaurants" team referenced above. I've been waiting for my layoff notice from EB Houston as I have heavy exposure to the oil and gas. The management is still being deceptive by not even announcing the layoff. At least this thread is more reliable then AJG management.
This is likely more than you requested but I come from an area of our corporate structure that gets a heads up on things like this and nothing large is planned at this point but will be impactful to some areas in which we operate, especially Texas.
The only area that I would have the most concern is if you reside in or support the Houston markets which nevertheless is a very large operation for us. If you are within this market you would've already known the largest danger is actually tied to two factors: 1- One of AJG's largest (Globally) is managed in Houston which is a hybrid of hospitality, gaming and restaurants 2- A large portion of the other revenue is tied to oil and gas (no explanation required). The outlook for Houston is driven by a short history lesson given this market was the epicenter of a massive amount of company investment over the past 5 years. Houston intentionally was ramped up to have a very large footprint but failed to create the financials (some out of their control) to support industry required margins . Uncle Pat is running a business, not a charitable organization thus is going to stop the bleeding in our rodeo region.
The brunt of the impact will occur to EB given their revenues and margins are highly sensitive to enrollments which have clearly been falling without a recovery on the horizon. The commercial exposures are not expected to fall as much given they have annualized revenue cycles offset by firm market conditions holding premiums and revenues.
Now away from the history lesson, the Q3 earnings support that we are a very healthy company thus barring the exceptions we are required to address this year