Head hunters claim early signs of downsizing in the investment banking industry as mergers and acquisitions slow down globally.
Highly-paid banking executives are now approaching recruitment firms, looking for jobs in telecom, information technology and private equity firms.
“I know people who have been in the investment banking industry for 15 to 20 years and never changed their job. But now they are looking for a change,” said Nirmit Parekh, Chairman, Penrhyn International, which serves corporate clients such as A V Birla Group and Philips International, besides some leading investment banking firms.
“Job cuts are definitely around the corner and they have to look for other options,” Parekh said, adding that the industry, however, had not yet seen any forced downsizing and that people were voluntarily looking for alternatives apprehending the worst.
“The apprehension is a combination of the fear of companies giving pink slips and low bonus,” said Deepak Gupta, India head, Korn/Ferry International.
While the core team of investment banking was witnessing voluntary movements, Gupta claimed that these investment banks had already downsized the back-end processing team.
Citi Group Global Markets, JP Morgan and Lehman Brothers are some of the Investment banking firms with captive BPOs in India.
Lehman Brothers, the global investment bank in financial crisis, declined to comment on trimming of staff.
A spokesperson for the company said, “Lehman Brothers continually reviews all of its businesses and support areas to ensure that they are optimally aligned versus the most attractive business opportunities.”
Another international investment bank, J P Morgan expressed its inability to comment as its spokesperson was not available. Citi Group Global Markets denied any downsizing in its investment banking team in India.
6 months ago