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 Hunt-Scanlon Advisors.

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.

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