Workers making more than $100,000 per year could be in trouble, one billionaire investor warns.
Jeffrey Gundlach, the CEO of DoubeLine Capital, said a wave of “higher-end unemployment” could hit white-collar workers making north of $100,000 as companies begin to reassess the need for these employees due to the COVID-19 pandemic, which has claimed millions of jobs and had a devasting outcome on the economy.
Gundlach highlighted remote working as one of the factors that could come into play when analyzing the necessity of one’s job. With businesses forced to rely on work-from-home mandates during the pandemic, he said it’s been a way for companies to see who works 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 during a webcast for the DoubleLine Total Return Bond Fund, via Yahoo Finance.
Speaking on his experience at DoubleLine, a Los Angeles-based bond investment firm, Gundlach said he’s noticed how those in charge of running certain sectors of the company have been less responsive compared to junior workers.
“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,” Gundlach said.
The 60-year-old said this revelation is being felt by many.
“Everybody feels this same way. They feel like this is sort of like Warren Buffett’s thing, ‘When the tide goes out, you find out who is swimming naked.’ I mean, when you actually have to respond quickly, and people below middle management are actually doing the responding, they start to get credit for the work,” he said.