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Financial meltdown to hit headhunters


lehman.jpgBy A.Ananthalakshmi – Analysis

BANGALORE (Reuters) – U.S.-based executive recruiters, already facing the heat of a global economic slowdown, could be a big casualty of the shakeup in the financial industry as battered Wall Street firms slow down on top-level hiring.

Korn/Ferry International Inc and Heidrick & Struggles International Inc — the only publicly traded executive search firms in the United States — could see profits erode further over the next few quarters as corporate America goes slow on white collar jobs.

The financial services sector accounted for about 19 percent of Korn/Ferry’s and 27 percent of Heidrick’s overall revenue in the latest reported quarter.

“We believe the slowdown in financial services will continue to affect the profit and loss statement of executive search companies in the third quarter,” Suntrust Robinson Humphrey analyst Tobey Sommer wrote in a note.

Jobs Roundup

Selected links from the financial industry’s roller-coast week, which left thousands out of work and even more worried about their future.

Wall Street Journal: B-Schools Move to Assist Alums
The day after Lehman Brothers Holdings Inc. said it would file for bankruptcy protection, University of Chicago’s Graduate School of Business career office had already made personal calls to all of their 26 alumni from the 2008 class who worked at the firm.