Almost two-thirds 63% of money managers surveyed have cut back on new hires or are considering laying people off due to the downturn in the stock market. However, only 19% already have cut back on staff, according to a survey by Mercer Manager Advisory Services.
The survey also indicated that 44% of respondents are actively seeking to reduce costs in response to the bear market. Of those firms, 88% are targeting administrative and operations initiatives; 76%, marketing and sales; and 53%, client services.
David Holmes, a consultant at Mercer, said the survey of 32 firms is not scientific but is "pretty indicative of whats going on. Each of the firms surveyed has from $1 billion to more than $500 billion in assets under management.