4 minBusiness
Bloomberg's Firing at Salomon Brothers Led to Media Empire
Mike Bloomberg was laid off from Salomon Brothers after 15 years, then founded the company that became Bloomberg LP the next morning, using his severance to build a data and media giant now worth billions.
Mike Bloomberg, the billionaire founder of Bloomberg LP and former New York City mayor, was fired from Salomon Brothers after dedicating 15 years to the investment bank. The dismissal came amid the firm's acquisition by Phibro Corporation, ending what Bloomberg had expected to be his entire career. The next morning, he launched Innovative Market Solutions, the venture that would evolve into Bloomberg LLC, the privately held software, data, and media company known for its ubiquitous financial terminals and news operation.
Bloomberg had started at Salomon Brothers as an entry-level clerk earning $9,000 a year, working his way up to partner. When the layoff came, he used his $10 million severance package to cofound the new company in 1981 with Thomas Secunda, Duncan MacMillan, and Charles Zegar. That decision transformed a career setback into one of the most successful business ventures of the modern era. Bloomberg currently owns 88% of the company, which Forbes estimates generates nearly $15 billion in annual revenue. His personal net worth is estimated at $109.4 billion.
Reflecting on the experience, Bloomberg said the firing taught him that every setback is an opportunity. «If I hadn't gotten fired, I might never have started Bloomberg, never run for mayor, and never had the chance to give back through Bloomberg Philanthropies,» he told Fortune. He added that while the termination stung at the time, he never held it against those involved because he had learned so much from them over 15 years. «I took much more from the job than a paycheck,» he said.
The lesson shaped his leadership philosophy. Bloomberg acknowledged that long-term planning has limits, noting that he loved working at Salomon and might have stayed there forever. «It's ok to make plans—but never let planning get in the way of doing,» he said. «The best laid plans often go awry, and you have to be able to roll with changes and adapt to them.» He also developed a deep appreciation for loyalty, which he now rewards at his own company. Employees who reach tenure milestones receive commemorative pylons, and Bloomberg said staff proudly display statues marking 10, 20, and even 30 years of service.
Bloomberg LP employs more than 26,000 people, with an average tenure of 7.8 years as of 2024, compared with the overall U.S. average of about 3.9 years, according to Bureau of Labor Statistics data. Bloomberg attributes that longevity to a culture of collaboration and creativity. Offices in nearly 70 countries are designed without walls or private offices, and every employee, regardless of position, receives the same size desk. He believes people leave companies when they don't feel heard or invested in, especially younger workers, and that addressing those concerns has kept staff around for decades.
From his current position spanning business, politics, and philanthropy, Bloomberg views the firing as a distant memory. But he credits it with teaching him that setbacks don't have to be career-crushing. «When you get knocked down, you have to get up and dust yourself off—and move on,» he said. «If you never fail, you're not setting your sights high enough. Life is too short to stick to the bunny slope.»
