As 2011 draws to a close, high-flying investment bankers (i-bankers) have emerged a worried lot.
The new year is likely to see huge jobs cuts in investment banking as companies such as Bank of America, Nomura and UBS are set to significantly slash headcount due to the global economic uncertainty. The focus is no more on salary hikes or incentives, as retention of jobs takes centrestage, said a senior executive at an investment banking firm. I-banking firm Daiwa Securities has already laid off 18 executives.
“Sentiments are very low and the focus is no more on increments and raises this time as most executives are worried about the safety of their jobs,” a senior vice-president engaged in a multi national firm providing financial services told HT on the condition of anonymity.
Investment banking expanded in India at a fast pace in the last two years. Hence, investment bankers are likely to be the worst affected in the current scenario. “The expansion was dramatic as India was being considered as one of the key growth drivers in the global context,” a headhunter who is flooded with resumes said. “Since not many had anticipated a slowdown around this time, they are trying to rationalise their operations now to reduce costs as no mega deals have happened in the last few months. The outlook for the immediate future looks equally dull.”