Cookie and Privacy Settings

This website uses cookies to enable essential functions like the user login and sessions. We also use cookies and third-party tools to improve your surfing experience on preplounge.com. You can choose to activate only essential cookies or all cookies. You can always change your preference in the cookie and privacy settings. This link can also be found in the footer of the site. If you need more information, please visit our privacy policy.

Data processing in the USA: By clicking on "I accept", you also consent, in accordance with article 49 paragraph 1 sentence 1 lit. GDPR, to your data being processed in the USA (by Google LLC, Facebook Inc., LinkedIn Inc., Stripe, Paypal).

Manage settings individually I accept
expert
Expert with best answer

Robert

96% Recommendation Rate

317 Meetings

3,639 Q&A Upvotes

USD 219 / Coaching

9

Have got an offer letter. Can it be rescinded due to recession/Covid19?

Hi,

I am a recent graduate and was recruited by a top strategy firm in the Middle East. I will be joining the firm in August and have received a job offer letter (soft copy) from them. I have not yet signed the hard copies.

Is it possible for the firm to rescind/cancel my offer because of the recession/Covid19? Is it usual in a time like this when most firms are laying off/are on a hiring freeze?

I am a little worried!

Thank you.

Hi,

I am a recent graduate and was recruited by a top strategy firm in the Middle East. I will be joining the firm in August and have received a job offer letter (soft copy) from them. I have not yet signed the hard copies.

Is it possible for the firm to rescind/cancel my offer because of the recession/Covid19? Is it usual in a time like this when most firms are laying off/are on a hiring freeze?

I am a little worried!

Thank you.

(edited)

Thank you for posting this question, I've been extremely worried about the exact same thing. I already signed my offer a month ago but have been so worried about a sudden downturn leading to rethinking new hires. Glad to see we're likely in the clear on that! — Anonymous B on Mar 13, 2020

My pleasure! — Anonymous A on Mar 13, 2020

everything will be fine, guys - keep safe and stay healthy! — Anonymous on Mar 19, 2020

9 answers

  • Upvotes
  • Date ascending
  • Date descending
Best Answer
Book a coaching with Robert

96% Recommendation Rate

317 Meetings

3,639 Q&A Upvotes

USD 219 / Coaching

Hi Anonymous,

I fully agree with Clara - it is unlikely that your offer is taken back.

Needless to say, we are currently in a global situation of uncertainty and political actions (see Italy) like not having been since long long time ago. It will definitely have an impact on consulting industry since some consulting projects and budgets are temporarily already frozen - people sitting a bit on the sideline to observe what is going on. However, once the uncertainty is going away, typically consulting projects are taking up speed again - think specifically about cost cutting and reorganizations. And for that, consulting firms also want to be prepared human-resource-wise.

In addition, it's a small industry and rumors easily go around - and it doesn't sound good within the industry, and even worse for the image for future applicants. So if it's reasonably possible to avoid, they will avoid cancelling issued offers!

Hope that helps - if so, please give it a thumbs-up with the green upvote button below!

Robert

Hi Anonymous,

I fully agree with Clara - it is unlikely that your offer is taken back.

Needless to say, we are currently in a global situation of uncertainty and political actions (see Italy) like not having been since long long time ago. It will definitely have an impact on consulting industry since some consulting projects and budgets are temporarily already frozen - people sitting a bit on the sideline to observe what is going on. However, once the uncertainty is going away, typically consulting projects are taking up speed again - think specifically about cost cutting and reorganizations. And for that, consulting firms also want to be prepared human-resource-wise.

In addition, it's a small industry and rumors easily go around - and it doesn't sound good within the industry, and even worse for the image for future applicants. So if it's reasonably possible to avoid, they will avoid cancelling issued offers!

Hope that helps - if so, please give it a thumbs-up with the green upvote button below!

Robert

Book a coaching with Clara

100% Recommendation Rate

50 Meetings

12,032 Q&A Upvotes

USD 229 / Coaching

Hello!

Once the offer is extended, it would be EXTREMLY rare that it gets rescinded.

What seems clear by now is that this is truly harming economy, and in the next weeks we will see whether we are heading to a global economic recession.

If this is the case, and we indeed face a global recession -even if not as hard as the previous one-, this will have an impact in consulting. Why? Simply because there would be less clients, less engagements with the usual clients, and an overall freeze in spending.

This, for sure, will impact recruiting, reducing the classes of BAs and Associates for a couple of years.

However, this won´t affect you if you are "in" already.

Hope it helps!

Cheers,

Clara

Hello!

Once the offer is extended, it would be EXTREMLY rare that it gets rescinded.

What seems clear by now is that this is truly harming economy, and in the next weeks we will see whether we are heading to a global economic recession.

If this is the case, and we indeed face a global recession -even if not as hard as the previous one-, this will have an impact in consulting. Why? Simply because there would be less clients, less engagements with the usual clients, and an overall freeze in spending.

This, for sure, will impact recruiting, reducing the classes of BAs and Associates for a couple of years.

However, this won´t affect you if you are "in" already.

Hope it helps!

Cheers,

Clara

Book a coaching with Francesco

100% Recommendation Rate

3,266 Meetings

11,707 Q&A Upvotes

USD 429 / Coaching

Hi Anonymous,

I don’t see a real possibility that the company could rescind the offer – worst case they may propose a later start. Recruiting will likely slow down due to the current uncertainty but not at the level of rescinding offers.

Having said that, you may accelerate the process of signing the hard copies to avoid problems with a possible later start.

Best,
Francesco

Hi Anonymous,

I don’t see a real possibility that the company could rescind the offer – worst case they may propose a later start. Recruiting will likely slow down due to the current uncertainty but not at the level of rescinding offers.

Having said that, you may accelerate the process of signing the hard copies to avoid problems with a possible later start.

Best,
Francesco

Book a coaching with Marco

100% Recommendation Rate

2 Meetings

15 Q&A Upvotes

USD 149 / Coaching

Totally agree with Clara, companies might reconsider the number of people they will recruit in the short term but I expect them to honour the offers they have already extended.

Best of luck!
Marco

Totally agree with Clara, companies might reconsider the number of people they will recruit in the short term but I expect them to honour the offers they have already extended.

Best of luck!
Marco

I have an offer from an MBB firm (signed contract). Was due to start soon but have recently been told it will now be deferred by approx. half a year. They also didn't rule out rescinding, but said that is unlikely and not being considered at this time.

I have an offer from an MBB firm (signed contract). Was due to start soon but have recently been told it will now be deferred by approx. half a year. They also didn't rule out rescinding, but said that is unlikely and not being considered at this time.

Can you please mention your location please? Is it in the US/ any other location? — Anonymous A on Mar 27, 2020

I'm going to talk against the others' answer with my personal experiences : yes they can, by doing it very trickily.

In resume, what happend to me to Kearney Paris :

- Have been successful with all 4 Partner/Principal interviews.

- Another Partner (also Kearney's global representative at Davos), never exchanged before, told everyone that I "called him day and night" to get a recommandation.

- HR called me the next day to cancel my offer, without any explanation.

- Extreme deception with psychiatric care.

- Another partner close to me told me the truth only after his departure (the one diffaming kind of cofounded the Paris office...).

The real reason are both: 1. Asian origin - suspicion on my future performance. 2. Political battle - I was recommanded by the newly appointed office chairman at that time - who won the position at the expense of the one diffaming me.

Afterwards:

2 years later, I "revenged" this Partner by cancelling all the future applications from Kearney China within a Chinese leader in Telco (as i'm the son of one of its R&D founders by coicidence). I'm also working in one of European's leading insurer as an Internal Strategy Consultant...

I'm going to talk against the others' answer with my personal experiences : yes they can, by doing it very trickily.

In resume, what happend to me to Kearney Paris :

- Have been successful with all 4 Partner/Principal interviews.

- Another Partner (also Kearney's global representative at Davos), never exchanged before, told everyone that I "called him day and night" to get a recommandation.

- HR called me the next day to cancel my offer, without any explanation.

- Extreme deception with psychiatric care.

- Another partner close to me told me the truth only after his departure (the one diffaming kind of cofounded the Paris office...).

The real reason are both: 1. Asian origin - suspicion on my future performance. 2. Political battle - I was recommanded by the newly appointed office chairman at that time - who won the position at the expense of the one diffaming me.

Afterwards:

2 years later, I "revenged" this Partner by cancelling all the future applications from Kearney China within a Chinese leader in Telco (as i'm the son of one of its R&D founders by coicidence). I'm also working in one of European's leading insurer as an Internal Strategy Consultant...

Sorry to hear that your verbal offer was rescinded. However, I think my situation is a bit different since I have already received an offer letter/an agreement that I have signed and sent back. — Anonymous A on Mar 25, 2020 (edited)

Hey A,

First of all my congratulations to your offer!

I understand that you are now very uncertain about your future career in consulting. But I want to assure you that rescinding an offer is not a common practice. So you may be sure that you will start this year at your company of choice. What might indeed happen is that HR might contacting you asking whether it’s possible for you to start sooner or later than originally planned depending on their stuffing situation.

This being sad I would recommend you the following:

  1. Sign the offer and send it back to HR (if not done yet)
  2. Calm down from the virus paranoia
  3. Focus on the things which really matter in your life – have some good rest, spend a lot of time with family and friends (you will miss this time in consulting ?), read books and take care of yourself!
  4. Get ready to start in consulting and prepare yourself for your future career – feel free to drop a line to get tips if you are interested.

I wish you all the best for your career!

Best,

André

Hey A,

First of all my congratulations to your offer!

I understand that you are now very uncertain about your future career in consulting. But I want to assure you that rescinding an offer is not a common practice. So you may be sure that you will start this year at your company of choice. What might indeed happen is that HR might contacting you asking whether it’s possible for you to start sooner or later than originally planned depending on their stuffing situation.

This being sad I would recommend you the following:

  1. Sign the offer and send it back to HR (if not done yet)
  2. Calm down from the virus paranoia
  3. Focus on the things which really matter in your life – have some good rest, spend a lot of time with family and friends (you will miss this time in consulting ?), read books and take care of yourself!
  4. Get ready to start in consulting and prepare yourself for your future career – feel free to drop a line to get tips if you are interested.

I wish you all the best for your career!

Best,

André

Book a coaching with Luca

100% Recommendation Rate

44 Meetings

2,435 Q&A Upvotes

USD 189 / Coaching

Hello,

It would be extremely difficult to rescind the contract, if it's a full-time offer. Once that they send you the job offer, they are formally committed to the offer. More over, the middle east will be one of the last market to suffer of the corona virus effect.
Send the signed copy and wait for their news. Don't be afraid to contact the HR staff if you want to discuss this with them, they are there to help.

Best,
Luca

Hello,

It would be extremely difficult to rescind the contract, if it's a full-time offer. Once that they send you the job offer, they are formally committed to the offer. More over, the middle east will be one of the last market to suffer of the corona virus effect.
Send the signed copy and wait for their news. Don't be afraid to contact the HR staff if you want to discuss this with them, they are there to help.

Best,
Luca

Book a coaching with Udayan

98% Recommendation Rate

93 Meetings

2,678 Q&A Upvotes

USD 209 / Coaching

From what I'm told McKinsey didn't rescind any offers in 2008 however they hired a lot fewer people in 2009 and then ramped up hiring significantly in 2010. These are cycles the economy goes through. Your offer is safe

From what I'm told McKinsey didn't rescind any offers in 2008 however they hired a lot fewer people in 2009 and then ramped up hiring significantly in 2010. These are cycles the economy goes through. Your offer is safe

Related case(s)

MBB Final Round Case - Smart Education

Solved 15.1k times
MBB Final Round Case - Smart Education Our client is SmartBridge, a nonprofit educational institution offering face-to-face tutoring services. The client operates in the US. The mission of SmartBridge is to help as many students as possible to complete studies and prevent that they drop from the school system, in particular in disadvantaged areas. The client is considering starting operations for its services in the Chicago area. They hired us to understand if that makes sense. Due to the nonprofit regulation, SmartBridge should operate on its own in the market, without any partnership. How would you help our client?
4.6 5 523
| Rating: (4.6 / 5.0)

Our client is SmartBridge, a nonprofit educational institution offering face-to-face tutoring services. The client operates in the US. The mission of SmartBridge is to help as many students as possible to complete studies and prevent that they drop from the school system, in particular in disadvant ... Open whole case

COVID-19 impact on Heathrow Airport

Solved 5.8k times
COVID-19 impact on Heathrow Airport Your client is the CEO of Heathrow airport (London), the busiest airport in Europe in terms of commercial traffic. Due to COVID-19, the airport's operations and hence, revenue streams, have been severely affected. The CEO asks for your help with the preparation of the upcoming Steerco, focused on: “How to secure Heathrow's revenue streams during April-June 2020, mitigating the effects of COVID-19”.
4.4 5 300
| Rating: (4.4 / 5.0)

Your client is the CEO of Heathrow airport (London), the busiest airport in Europe in terms of commercial traffic. Due to COVID-19, the airport's operations and hence, revenue streams, have been severely affected. The CEO asks for your help with the preparation of the upcoming Steerco, focused on: ... Open whole case

Chinese Chess - Airline Business During COVID-19

Solved 3.3k times
Chinese Chess - Airline Business During COVID-19 Sky China, a government-backed Chinese airline, has recently seen profits plummet due to COVID-19. Profits are down 80% in the months of February and March, but are showing early signs of a rebound in April.  They've brought you in to first investigate what can be done immediatedly to prevent hemorrhaging cash and surive in the short-term. They are also looking to see how the current situation can be viewed as an opportunity, and what can be done to prepare for the future. 
4.3 5 101
| Rating: (4.3 / 5.0)

Sky China, a government-backed Chinese airline, has recently seen profits plummet due to COVID-19. Profits are down 80% in the months of February and March, but are showing early signs of a rebound in April. They've brought you in to first investigate what can be done immediatedly to prevent hemor ... Open whole case

Coronavirus Times - COVID-19 Brainteaser

Solved 3.0k times
Coronavirus Times - COVID-19 Brainteaser You and your family are faced with a challenging set of decisions. Due to coronavirus, your partner has taken a 20% paycut and you are worried you may lose your job. In addition, while daycare is still open, you are worried that sending your two children there will increase the risk of them bringing the virus back to your house, where your elderly grandparents are also staying. How would you go about thinking about this problem, and what would you recommend?
4.5 5 35
| Rating: (4.5 / 5.0)
Difficulty: Beginner | Style: Brain Teaser | Topics: Brain teaser

You and your family are faced with a challenging set of decisions. Due to coronavirus, your partner has taken a 20% paycut and you are worried you may lose your job. In addition, while daycare is still open, you are worried that sending your two children there will increase the risk of them bringing ... Open whole case

Cutting Carbs - Divestiture in the Electrical Power Market

Solved 900+ times
Cutting Carbs - Divestiture in the Electrical Power Market Our client is Energy England, one of northern England’s largest electric utility companies. They were created over the past decade through an aggressive series of mergers of existing utility companies each specializing in a single energy generation source. Recently, the CEO has embarked on an initiative to return to the core of the business. She is looking to increase free cash flow and cash reserves in order to prepare the business for evolving future trends.   The following can be verbally provided to interviewee if asked: Energy England is made up of assets across the energy-generation space. These include coal, gas, nuclear, and wind We are looking to divest from just one of our previous acquisitions (i.e one target is sufficient) There are no specific goals/metrics – the client trusts our judgement
4.2 5 20
| Rating: (4.2 / 5.0)

Our client is Energy England, one of northern England’s largest electric utility companies. They were created over the past decade through an aggressive series of mergers of existing utility companies each specializing in a single energy generation source. Recently, the CEO has embarked on an initi ... Open whole case