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Nomura and Credit Suisse make big cuts, as only 16% find new jobs

Contrary to hope and expectation, this year has not seen an end to banking layoffs and staff departures. Analysis of the Financial Services Authority (FSA) Register reveals that nine major banks in London have parted company with 670 people since the start of January 2013. So far, only 100 of these people have found new jobs elsewhere in London.

The biggest exits this year have been at Nomura and Credit Suisse. Since the start of the year, 146 people have left Nomura International and 100 have left Credit Suisse International. Nomura said in January that it was 75%-80% through its cost cutting programme, but the Japanese bank has since made widespread redundancies in its equity research business. Credit Suisse, meanwhile, is attempting to shave CHF4.4bn from its cost base annually. Unsurprisingly, the investment bank appears to be at the forefront of the cuts: costs in Credit Suisse’s investment bank were a troubling 84% of revenues in 2012.

Worryingly, bankers who’ve left Credit Suisse and Nomura this year haven’t had much success finding new jobs in London. For the moment, only 18% of the people who’ve left Nomura and just 11% of the people who’ve left Credit Suisse have found new FSA registered roles at other institutions.

Across all of the banks we looked at, the worst rate of re-employment is at Merrill Lynch International (now part of Bank of America), where 92 people have left since January and a mere six have resurfaced at other banks. The best rate of re-employment is at SocGen, where 32% of people who’ve left have found new jobs elsewhere.

Varying rates of re-employment are likely to be a function of the kinds of people who left and how recently they departed. “Junior people will often get back into the market more quickly than very senior people,” said Logan Naidu, CEO of recruitment firm Dartmouth Partners. He added: “Junior bankers are generally more flexible and their need to work is greater – someone who has been a managing director in a bank will often have accumulated a lot of capital and be able to afford to sit back and wait for the ideal role, whereas a junior who has been living on a monthly salary will be compelled to get back into the market sooner.”

The real rate of re-employment for bankers who’ve left their jobs in London in 2013 

Societe Generale: Leavers without new jobs: 27. Leavers with new jobs: 13. Percentage of leavers finding new jobs: 33%.

Morgan Stanley International: Leavers without new jobs: 37. Leavers with new jobs: 10. Percentage of leavers finding new jobs: 21%.

Nomura International: Leavers without new jobs: 120. Leavers with new jobs: 26. Percentage of leavers finding new jobs: 18%.

JPMorgan Securities: Leavers without new jobs: 41. Leavers with new jobs: 8. Percentage of leavers finding new jobs: 16%.

UBS AG: Leavers without new jobs: 82.  Leavers with new jobs: 16. Percentage of leavers finding new jobs: 16%.

Goldman Sachs International: Leavers without new jobs: 46. Leavers with new jobs: 8. Percentage of leavers finding new jobs: 15%.

Credit Suisse International: Leavers without new jobs: 89. Leavers with new jobs: 11. Percentage of leavers finding new jobs: 11%.

Merrill Lynch International: Leavers without new jobs: 86. Leavers with new jobs: 6. Percentage of leavers finding new jobs: 7%.

BNP Paribas: Leavers without new jobs: 41. Leavers with new jobs: 3. Percentage of leavers finding new jobs: 7%.

Comments (2)

Comments
  1. How do you take into account people who find non-FSA registered jobs? There are a substantial number of roles even within investment banking/research that do not require being registered as investment advisor with the FSA. The leaver numbers also look understated for 2013 as there are likely people ‘at risk’ who are not yet off the FSA register. .

  2. An interesting set of statistics. Can you tell me how you sourced them, how you know how many candidates in each company have found new jobs?

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