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Business Exclusive Headlines News

Asian banks face job cuts

Bangalore, June 26 () : Manpower agencies say that hiring demand from big ticket clients has come down by as much as 30% when compared to 2011. Many are to go in for job cuts.

Sluggish economy and lack of investors from home and abroad into Indian companies due to the uncertain policies have made hiring a thing of the past. In the last quarter, fall in hiring was 5% and it is expected to increase. Stock markets volatility and a declining rupee have affected many companies listed in BSE and NIFT.

Manpower agencies all over the country say that this is the worst period that they have seen in last six quarters. Their best period was in March-April 2011, has then been on a up and down swing and has now hit an 18-month low rock bottom. The monsoon has been delayed and RBI seems to be powerless to arrest the fall of rupee against dollar.

Report from Hong Kong says that Asian investment banners and brokerage firms are cutting jobs and mainly expats and senior job positions are those shown the door. CLSA , Deutsche Bank, Goldman Sachs, and UBS are those that are cutting jobs. Those dealing in equities have gone in for cuts in this quarter. Though official figures have not come, hiring agencies say that banks have cut 5-7 percent of staff. Jobs cuts usually take place in November and December.

Worst hit has been the equity capital market deals in Asia market like Japan. Equities including IPOs and follow-ons declined by 47.5 percent in 2012 till mid-June to $67.8 billion. IPO deal volumes declined 85 percent in the first five months of the year in Hong Kong market which is the slowest start in about four years .