- Wealth PMS (50L+)
Markets are down nearly 20%, and some stocks over 50% in the last three months. Brokerages are cutting down on employee costs by slashing salaries or letting people go. (Business Line)
Mr Amit Sharma (name changed), a departmental head at a large retail brokerage in Mumbai, had to take a 35 per cent pay cut last week.
Rising costs and falling revenues are forcing broking houses to delay salaries, cut pay packets and even lay off employees. Some brokerages are even contemplating winding up business.
Experts said that another Y2K kind of scenario could emerge. “All of a sudden, my inbox is flooded with CVs of overqualified people willing to work for any price,” said the Head of Research of an Indian Brokerage. “Retrenchment had already started two to three weeks ago,” he added.
I can’t seem to get any other news like this – it seems that the cash turnover is down, but it’s also that the business has no focus on customer education, better risk management or better technology. Bear markets are traditionally bad for brokerage firms around the globe, but firms in India are seriously employee heavy and feel the pinch a lot more.