Quote:
Originally Posted by Unregistered
Agree, there are indeed some retrenchments ongoing in some european banks, but nothing massive.
This world may not need funky structured CDOs, but it still need financial services from basic depo/loan, capital market access, trade financing, custodial services, to sophisticated risk management hedging, investment advisory, M&A/Corp finance advisory.
Other industries are going through tough times, a few headlines like below can also be seen
Nokia Siemens to Cut Work Force by 17,000
Amd Slashes 10% Of Workforce
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Well two things :
- finance is more prone to hire / fire practices because (1) its an ppl industry where you can ramp up capacity or capability fairly quickly simply by hiring experienced ppl (in other industries, capacity tends to be capped by infrastructural constraints ) (2) salaries are a large component of total cost in finance (hence cutting jobs is v efficient way to bring down cost base)
- finance professionals tend to have a harder time finding an equivalent paying job to maintain the family's lifestyle (no sympathy expected here , but its nonetheless a reality )
Whats left unsaid in this thread so far is that there is also another group of innocent casualties in this environment - ie the graduating mba finance and banking and finance grads, which went into their courses years ago bright eyed and with dreams of the $5 to 10k job at 25, a decision made at a time the financial industry seemed the hottest sector out there. Its almost like a replay of the life sciences story.