Because it takes about six months to a year for executive search firms to catch up with the general labor market, a number of recruiters that specialize in financial services are likely to cut their staffs early next year, Dow Jones reports.
As it is, business is down 40% to 60% at many recruiters that specialize in investment management, and those recruiters are expected to cut about 35% of their staffs. Already, some firms have laid off 10% to 15% of their staffs.
In terms of layoffs at the recruitment firms themselves, this is really just beginning, said Christopher Hunt, president of recruitment research firm
Areas of financial services that have been hardest hit include securitization, structured products, bond origination, prime brokerage and credit market trading. As a result, some recruiting firms are moving into the restructuring or turnaround areas.
