According to analysis of 29 major banks conducted by Reuters, this trend signifies a long term shrinking of the sector, as redundancies outnumber new hires by two-to-one. Because of overall sector shrinking, those that are made redundant at one firm are unable to find an equivalent job elsewhere, the business news site noted.
One anonymous source admitted: ‘When I let go of tons of people in cash equities this year, I knew most would be finished in this business. It is pretty dead. Some will just have to find something completely different to do.’
Some areas are more exposed than others, for example stock trading and mergers and acquisitions, and even retail banking.
For graduates looking to join the industry, there is a silver lining to this dispiriting news, however: in general it is the costly senior bankers that are more at risk of redundancy and who find it harder to move into new positions, rather than the new recruits.
According to Ebrahim from the Kennedy Group: ‘At MD level, it is tougher to accept smaller jobs, and they do not have the same drive and ambition as the young bankers who have just graduated’.
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