But layoffs, “from moderate to severe,” will eventually occur at money management firms as a result of the market downturn and the “severe recession” that is expected to follow the pandemic, said Alan Johnson, managing director of New York-based compensation consultant Johnson Associates Inc.

Despite this, he has advised money management clients to not panic and “do sensible things” regarding decisions about their workforces.

“I know there will be stories of bad HR practices, and if you’re a business, you don’t want that headline,” Mr. Johnson said. In addition to negatively impacting company morale, sudden decisions about layoffs amid the pandemic may also carry legal implications, particularly if employees become or are sick, he added.

Pensions & Investments / April 3, 2020