# Jefferies COVID case outbreak casts pall over Wall St’s office return
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-12-09
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Jefferies Financial Group urges staff to work from home amid
Meta Description: Investment bank Jefferies Financial Group has asked staff to work from home again due to a spate of COVID-19 cases, raising questions about banks' efforts
URL: https://financedigest.com/jefferies-covid-case-outbreak-casts-pall-over-wall-sts-office-returnhtml

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By Aaron Saldanha, Noor Zainab Hussain and Matt Scuffham

(Reuters) – Investment bank Jefferies Financial Group on Wednesday asked staff to work from home again due to a spate of COVID-19 cases, raising questions about banks’ efforts to return to business as usual.

U.S. banks have been more assertive than other industries in encouraging [employees back to the office](https://www.financedigest.com/hundreds-of-tyson-foods-employees-to-depart-as-company-closes-offices-wsj.html "Hundreds of Tyson Foods employees to depart as company closes offices – WSJ"), but those plans have come under renewed scrutiny due to the rapid spread of the Omicron variant.

Jefferies said it was also cancelling client parties and [virtually all travel](https://www.financedigest.com/virtual-cards-in-the-travel-industry.html "Virtual cards in the travel industry"). The firm’s [disclosure prompted speculation about whether other banks](https://www.financedigest.com/what-banks-need-to-prepare-for-eba-pillar3-disclosure-of-esg-risks.html "What Banks Need to Prepare for EBA Pillar3 Disclosure of ESG Risks") will follow suit.

Those financial institutions and Wall Street firms that believed there will be an automatic return to work and were pushing for that are going to reexamine their current return to work status especially given employees’ concerns,” said Brian Marks, a former [banking regulator](https://www.financedigest.com/swiss-regulator-monitoring-banks-and-insurers-after-svb-collapse.html "Swiss regulator monitoring banks and insurers after SVB collapse") and now senior lecturer at the University of New Haven’s business school.

Jefferies, with its headquarters in midtown Manhattan, had [called its staff back to offices](https://www.financedigest.com/international-law-firm-calls-in-viato-connect-uk-and-us-offices.html "INTERNATIONAL LAW FIRM CALLS IN VIATO CONNECT UK AND US OFFICES") in October. The bank has felt the pandemic’s impact acutely, as its [Chief Financial Officer](https://www.financedigest.com/impact-com-appoints-new-chief-people-officer-to-lead-people-growth-and-excellence.html "impact.com Appoints New Chief People Officer to Lead People Growth and Excellence") Peg Broadbent died due to coronavirus complications in March 2020.

“Our priority now is to best protect every one of you and your families,” wrote Chief Executive Richard Handler in a memo seen by Reuters. “Effective today, we are cancelling all social events and entertainment until January 3rd.”

Jefferies added in the memo that while it was “beyond eager for all of our [people to be back in our offices..](https://www.financedigest.com/sodexo-tops-q1-sales-estimates-as-people-return-to-offices.html "Sodexo tops Q1 sales estimates as people return to offices").When you can, we [ask that you work from home.”](https://www.financedigest.com/uk-home-asking-prices-rise-tax-cuts-to-spur-demand-rightmove.html "UK home asking prices rise, tax cuts to spur demand: Rightmove")

The firm has had more than 40 new COVID-19 [cases this month including 10 on Tuesday, the memo said, adding only very few cases required hospitalization](https://www.financedigest.com/u-s-coronavirus-cases-hit-new-high-hospitalizations-creep-up.html "U.S. coronavirus cases hit new high, hospitalizations creep up"). Handler added that Jefferies was re-imposing a mask mandate in all offices, regardless of [vaccination status](https://www.financedigest.com/outcry-as-australia-bars-djokovic-over-vaccination-status.html "Outcry as Australia bars Djokovic over vaccination status").

Jefferies, which had seen attendance average as high as 60% many days globally in recent weeks, said it will require [booster shots](https://www.financedigest.com/fda-advisers-back-the-same-covid-vaccine-for-initial-shots-boosters.html "FDA advisers back the same COVID vaccine for initial shots, boosters") by Jan. 31.

The investment bank, which has 4,500 employees worldwide, also has offices in [Asia and Europe](https://www.financedigest.com/heineken-sees-europe-resilience-offseting-asia-slowdown-risk.html "Heineken sees Europe resilience offseting Asia slowdown risk"). More than 95% of Jefferies staff are now vaccinated, and all visitors to Jefferies’ offices must be fully vaccinated, Handler said in the memo.

Jefferies did not [say where the staff with COVID](https://www.financedigest.com/the-icu-is-full-medical-staff-on-frontline-of-chinas-covid-fight-say-hospitals-are-overwhelmed.html "‘The ICU is full’: medical staff on frontline of China’s COVID fight say hospitals are ‘overwhelmed’") worked.

[Shares in the bank](https://www.financedigest.com/asia-shares-bank-on-eventual-china-opening-oil-gains.html "Asia shares bank on eventual China opening; oil gains") closed down 2.3%.

New York set a [vaccine requirement for workers at all private companies as the highly transmissible Omicron variant pushes](https://www.financedigest.com/the-plantbased-vaccines-market-to-get-pushed-based-on-digitization.html "The Plantbased Vaccines Market to get pushed based on digitization") into more U.S. states. The New [York City Mayor’s office and New York Department of Financial](https://www.financedigest.com/new-york-holds-top-spot-london-second-in-z-yen-financial-centre-survey.html "New York holds top spot, London second in Z/Yen financial centre survey") Services did not respond to requests for comment on the Jefferies cases.

Most major U.S. [banks have had staff working in offices](https://www.financedigest.com/barclays-private-bank-opens-new-office-in-verbier-switzerland-for-2022-23-ski-season.html "Barclays Private Bank opens new office in Verbier, Switzerland for 2022/23 Ski Season") since the summer. [Senior bankers](https://www.financedigest.com/financial-risks-of-climate-change-overplayed-senior-hsbc-banker-says.html "Financial risks of climate change overplayed, senior HSBC banker says") such as Goldman Sachs Chief Executive David Solomon and Morgan Stanley Chief Executive James Gorman have spoken of the benefits of in-person interaction, particularly for younger employees.

So far, U.S. banks are sticking to their existing COVID-19 policies although sources at the “big six” [firms say](https://www.financedigest.com/over-a-dozen-chinese-based-firms-say-they-have-minimal-exposure-to-svb.html "Over a dozen Chinese-based firms say they have minimal exposure to SVB") they are keeping a close watch on developments.

Goldman Sachs, Morgan Stanley and JPMorgan have had most workers [back at offices](https://www.financedigest.com/to-be-or-not-to-be-back-at-the-office-that-is-the-question.html "To be or not to be (back at the office)? That is the Question") on a rotational basis since the summer.

Others, like Wells Fargo, [Citigroup and Bank](https://www.financedigest.com/citigroup-to-buy-deutsche-bank-license-in-mexico-for-wholesale-unit.html "Citigroup to buy Deutsche Bank license in Mexico for wholesale unit") of America, have taken a more flexible stance.

Wells Fargo [pushed its return-to-office plans](https://www.financedigest.com/ikea-plans-new-u-s-stores-in-2-2-billion-push-to-challenge-walmart-and-wayfair.html "IKEA plans new U.S. stores in .2 billion push to challenge Walmart and Wayfair") back to January, while Citigroup employees in New York, Chicago, Boston, Philadelphia and Washington, D.C. have been working from the office at [least two days a week](https://www.financedigest.com/80-of-brits-admit-to-feeling-hangry-at-least-once-a-week.html "80% of Brits admit to feeling “hangry” AT LEAST once a week") since Sept. 13.

HOLIDAY PARTIES

Some U.S. banks are also [choosing not to host holiday](https://www.financedigest.com/3-reasons-why-more-of-us-are-choosing-a-staycation-for-our-holiday.html "3 reasons why more of us are choosing a staycation for our holiday") parties. Wells Fargo said Wednesday it had no firm-wide celebrations planned. Team parties are at the discretion of individual managers. Citi will not host [holiday parties this year](https://www.financedigest.com/survey-data-28-brits-say-brexit-sped-decision-buy-uk-holiday-home-year.html "Survey Data: 28% of Brits Say Brexit Has Sped Up Their Decision to Buy a UK Holiday Home This Year") to help prevent the spread of COVID-19, a source familiar with the matter said.

In Europe, where Omicron has spread more rapidly, some banks have cancelled events such as JPMorgan’s annual festive carols reception in [London and year-end party in Paris](https://www.financedigest.com/london-fears-losing-luxury-shoppers-to-paris-and-milan.html "London fears losing luxury shoppers to Paris and Milan").

Deutsche [Bank has told its London](https://www.financedigest.com/token-inc-launches-london-office-to-answer-demand-from-european-banks.html "Token, Inc. Launches London Office to Answer Demand from European Banks") staff they can hold small gatherings at the team level. [Asset manager](https://www.financedigest.com/britains-post-brexit-asset-management-revamp-eyes-liquidity-tokenisation.html "Britain’s post-Brexit asset management revamp eyes liquidity, tokenisation") Schroders and the City of London Corporation, which runs London’s historic financial district, ask guests to take rapid tests before some festive events.

Some large U.S. companies are also pushing back their office-return date due to the Omicron variant.

Businesses “have to do a [balancing act,”](https://www.financedigest.com/fintech-and-compliance-managing-the-eternal-balancing-act.html "Fintech and compliance: Managing the eternal balancing act") said Marks. While it’s really important to get people back together, (concern over COVID-19) could sever the relationship to the point of no return, leading [employees to look for other jobs.”](https://www.financedigest.com/finding-new-home-easy-job-cambridge-employees.html "Finding A New Home Is An Easy Job For Cambridge Employees") (This story corrects number of Jefferies employees worldwide in 10th paragraph to 4,500, not 3,000)

(Reporting by Matt Scuffham and Aaron Saldanha, additional reporting by Sruthi Shankar in Bangalore and Elizabeth Dilts Marshall; writing by Matt Scuffham and Megan Davies; editing by Edward Tobin and Cynthia Osterman)


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