BFSI Expecting Job Cuts in Coming Months
In a survey of 1,424 executives from all regions and industries, the financial services industry was deemed the most likely of the four sectors quizzed to hire talent that otherwise would have been unavailable, and second most likely to seek M&A opportunities. The survey, conducted by McKinsey, states that mergers & acquisitions and hiring opportunities top the agenda of executives in the BFSI sector worldwide.
Just over a fifth (21%) in financial services said they were keen to hire talent that otherwise would have been unavailable, compared to 20% in professional services, 16% in high-tech and 10% in manufacturing. The sector was also the second least likely to reduce capital investments, with just a third saying they would be cutting investments, while 27% said that would introduce new products to benefit from weakened competitors.
However, the survey expected further job cuts across the industry. Around one in nine, or 12% of financial services respondents said they would be increasing their workforce, with 43% saying they expected their workforce to decrease in the coming six months.
According to the survey, all across the industries expected a global recession and high volatility in the equity markets. However, half said they expected their companies’ profits to stay stable or increase.
In addition, “some are finding opportunity in turmoil - by entering markets where competitors have weakened, hiring talent that would otherwise not be available, and seeking M&A opportunities”, according to the report. The survey was carried out from November 5 to November 10. Just over half of the companies represented were publicly listed, and 43% have revenues of more than $1billion.
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