Linklaters has hired Accenture for client service advice as it pushes for growth.
Consultancy giant Accenture has been looking at the Magic Circle law firm’s technology, templates and processes in order to improve its interactions with its clients, Financial News has learned.
The project includes exploring the use of generative AI in client pitches, according to a person familiar with the situation.
The work with Accenture focuses on the firm’s business services teams in a drive to make them more client-centric, the people said.
READ Paul Weiss hires Simpson Thacher partner to lead Brussels expansion
“Our business teams play an integral role in the outstanding service we offer to clients. We want to ensure that we continue to be equipped to do that in the most effective ways possible,” a spokesperson for Linklaters said in a statement.
The process is being led by Linklaters’ chief growth officer Lucy Murphy, according to people familiar with the situation.
Murphy joined the firm in September last year having previously worked for Magic Circle firms Allen & Overy and Freshfields Bruckhaus Deringer in senior business services roles.
Murphy was given a brief of driving forward the firm’s client strategy when she joined last year.
“Lucy will play a pivotal role in ensuring that we are even more client centric and that everything we do as a firm is to the benefit of our clients,” Linklaters’ managing partner Paul Lewis said in September.
Linklaters has been scrambling to harness generative AI amid a rush in the professional services sector to adopt the new technology.
READ Why law firms are betting big on Saudi Arabia
The firm launched an AI chatbot for its lawyers in March last year which was built using Microsoft’s Azure OpenAI service.
Last month the firm said it was promoting the co-head of its AI steering group Shilpa Bhandarkar to partner, in a sign of its commitment to the new technology.
Linklaters is not the only Magic Circle law firm turning to consultancy firms for advice. Its rival Allen & Overy has tapped KPMG and McKinsey to advise on its merger with US firm Shearman & Sterling which is scheduled to go live in May, Law.com reported.
To contact the author of this story with feedback or news, email Edin Imsirovic
Published: Feb. 23, 2024 at 5:33 a.m. ET
Shares of Tata Consultancy Services Ltd. 532540 inched down 0.84% to 4,051.95 Indian rupees Friday, on what proved to be an all-around rough trading session for the stock market, with the S&P BSE Sensex Index 1 falling 0.02% to 73,142.80.
Tata Consultancy Services Ltd. closed 132.60 rupees short of its 52-week high (4,184.55 rupees), which…
Shares of Tata Consultancy Services Ltd.
532540
inched down 0.84% to 4,051.95 Indian rupees Friday, on what proved to be an all-around rough trading session for the stock market, with the S&P BSE Sensex Index
1
falling 0.02% to 73,142.80.
Tata Consultancy Services Ltd. closed 132.60 rupees short of its 52-week high (4,184.55 rupees), which the company reached on February 9.
The stock underperformed when compared to some of its competitors Friday, as MphasiS Ltd.
MPHASIS
rose 1.08% to 2,727.60 rupees and Wipro Ltd.
WIPRO
rose 0.96% to 536.15 rupees.
Trading volume (171,592) eclipsed its 50-day average volume of 170,295.
Editor’s Note: This story was auto-generated by Automated Insights, an automation technology provider, using data from Dow Jones and FactSet. See our market data terms of use.
Published: Feb. 21, 2024 at 5:33 a.m. ET
Shares of Tata Consultancy Services Ltd. 532540 dropped 1.01% to 3,989.30 Indian rupees Wednesday, on what proved to be an all-around dismal trading session for the stock market, with the S&P BSE Sensex Index 1 falling 0.59% to 72,623.09.
Tata Consultancy Services Ltd. closed 195.25 rupees short of its 52-week high (4,184.55 rupees), which…
Shares of Tata Consultancy Services Ltd.
532540
dropped 1.01% to 3,989.30 Indian rupees Wednesday, on what proved to be an all-around dismal trading session for the stock market, with the S&P BSE Sensex Index
1
falling 0.59% to 72,623.09.
Tata Consultancy Services Ltd. closed 195.25 rupees short of its 52-week high (4,184.55 rupees), which the company achieved on February 9.
Despite its losses, the stock outperformed some of its competitors Wednesday, as MphasiS Ltd.
MPHASIS
fell 4.00% to 2,654.35 rupees and Wipro Ltd.
WIPRO
fell 1.98% to 521.40 rupees.
Trading volume (24,380) remained 150,722 below its 50-day average volume of 175,102.
Editor’s Note: This story was auto-generated by Automated Insights, an automation technology provider, using data from Dow Jones and FactSet. See our market data terms of use.
HSBC’s global banking and markets unit jumped 8% last year as the UK lender increased fees from dealmaking and maintained trading revenue in most asset classes.
The UK lender posted revenue of $16.1bn for its global banking and markets unit last year, according to its annual accounts. Fees from capital markets and M&A work surged 36%, with HSBC’s investment bank benefiting from a resurgence in debt underwriting revenue.
HSBC’s pre-tax profit of $30.3bn for 2023 was a record for the bank and an increase of 78%, but still below the $34bn expected by analysts. In a statement, chief executive Noel Quinn said that the results “reflected four years of hard work and the strength of our balance sheet in a higher interest rate environment.”
HSBC finished 16th in the investment banking fee league tables last year, according to data provider Dealogic, with 1.3% share of the market. This is up from 17th a year earlier.
The UK lender’s markets and securities services business posted revenue of $9bn, which was largely in line with 2022. However, equity trading fees of $552m were nearly half of the $1bn it earned in the unit in 2022.
HSBC’s GBM business dipped 4% in the final quarter of the year to $3.7bn.
READ HSBC hikes bonuses to $771,700 for its top investment bankers
HSBC has bolstered its UK investment bank over the past year, hiring two senior dealmakers for corporate broking in July, but faces stiff competition from Barclays, which is aiming to consolidate its first place finish in the UK dealmaking fee league tables last year. In recent months, hires within its investment bank have focused on its core markets of China and the Middle East.
Investment banks have struggled against an ongoing drought in deals, with Wall Street banks and Europeans alike posting sharp declines in M&A fees in 2023. UK rival Barclays unveiled a 12% decline in investment banking fees for 2023, led by a 23% slump in revenue from M&A work.
Barclays also unveiled its first investor day since 2014, separating its business into five key units including separating its investment bank from its corporate bank. While the UK lender will look to reduce its reliance on its investment bank, it is not pulling back and within its dealmaking team intends to shift the balance away from debt underwriting to do more M&A and equity capital markets work.
Deutsche Bank’s origination and advisory business was up by 25% in 2023, buoyed by a rebound in debt capital markets activity as its M&A unit slipped 25%. A hiring spree of 50 managing directors at the German lender last year aims to shift the balance of its investment bank towards more M&A and equity capital markets work.
To contact the author of this story with feedback or news, email Paul Clarke
Published: Feb. 19, 2024 at 5:33 a.m. ET
Shares of Tata Consultancy Services Ltd. 532540 inched down 0.67% to 4,101.60 Indian rupees Monday, on what proved to be an all-around positive trading session for the stock market, with the S&P BSE Sensex Index 1 rising 0.39% to 72,708.16.
Tata Consultancy Services Ltd. closed 82.95 rupees short of its 52-week high (4,184.55 rupees), which…
Shares of Tata Consultancy Services Ltd.
532540
inched down 0.67% to 4,101.60 Indian rupees Monday, on what proved to be an all-around positive trading session for the stock market, with the S&P BSE Sensex Index
1
rising 0.39% to 72,708.16.
Tata Consultancy Services Ltd. closed 82.95 rupees short of its 52-week high (4,184.55 rupees), which the company reached on February 9.
Despite its losses, the stock outperformed some of its competitors Monday, as MphasiS Ltd.
MPHASIS
fell 0.81% to 2,779.35 rupees and Wipro Ltd.
WIPRO
fell 1.30% to 535.95 rupees.
Trading volume (56,840) remained 118,238 below its 50-day average volume of 175,078.
Editor’s Note: This story was auto-generated by Automated Insights, an automation technology provider, using data from Dow Jones and FactSet. See our market data terms of use.
The biggest Wall Street banks cut 30,000 jobs last year, kicked off by Goldman Sachs who informed its staff of plans to make its deepest reductions since the 2008 financial crisis shortly after Christmas 2022.
Goldman’s 3,200 job cuts were swiftly followed by 3,500 at Morgan Stanley, and then 5,000 at Citigroup. Bank of America refrained from deep redundancies, but 4,000 employees departed regardless through its ‘natural attrition’ approach last year.
With the exception of Credit Suisse, which started cutting thousands of roles before being acquired by its biggest rival UBS in March, European banks refrained from deep redundancies last year.
Times have changed.
Whether it’s an attempt to revive a flagging share price, free up funds for buybacks, the march of technology, strategic overhauls or simply reining in costs, top European banks are cutting jobs and reducing bonuses for those that remain.
READ ‘Doughnuts’ loom: Bankers brace for brutal bonus season
“It’s a balancing act for a lot of European banks, particularly after two years of poor performance for investment banking. There’s only so long you can keep paying expensive talent in the hope that revenue will recover,” said Gary Greenwood, a bank analyst at Shore Capital.
Barclays is expected to unveil a strategic overhaul alongside its annual results on 20 February, with the UK lender looking to save £1.25bn in costs. So far, job cuts have mainly hit support functions. Deutsche Bank said that 3,500 jobs will go over the next year, largely in back office functions, as it looks to save €2.5bn after headcount swelled 6% in 2023.
Societe Generale is cutting 900 jobs within its Paris headquarters as part of new CEO Slawomir Krupa’s plans to pull back on costs, while UBS has earmarked around $6.5bn in employee expenses to be stripped out as it integrates Credit Suisse.
On a smaller scale, Rothschild cut around 10 investment banking jobs in January, with former Goldman dealmaker John Brennan departing.
“The US banks are much more reactive in terms of cutting headcount than their European counterparts,” said Stephane Rambosson, co-founder of headhunters Vici Advisory. “European banks are now focused on costs, but each case is specific to their circumstances rather than market conditions. Wall Street banks are also quicker to hire again when the tide turns.”
As well as job cuts, bankers are enduring another brutal bonus round. There is widespread disgruntlement at UBS as the bank spread an already small pool around its existing employees, the influx of Credit Suisse staff and a flurry of senior Barclays dealmakers brought in last year on guarantees, according to bankers.
Barclays has handed zero bonuses to up to a third of dealmakers in some units, bankers told Financial News, with Bloomberg previously reporting that “dozens” of employees were set for doughnuts this year. Deutsche Bank, which also has to digest an expensive hiring spree and its £410m acquisition of City broker Numis, is also set to reduce bonus payments.
READ Investment banks face talent crunch even after deep job cuts
“We have observed a similar, but even more aggressive, trend with the European banks regarding layoffs and bonus pool reductions,” said Chris Connors of Wall Street compensation consultants Johnson Associates. “The European banks have struggled to keep pace with their American counterparts on business results and compensation. From the employee perspective, we anticipate European bankers to be similarly disappointed to US bankers given the muted results in advisory and other units such as underwriting, which are still well below 2021 levels.”
While US banks cut dozens of dealmakers last year, some European players took advantage of the dislocation. Deutsche hired 50 senior bankers, while Santander picked up dealmakers from both the fallout from Credit Suisse’s takeover and from Goldman Sachs and Morgan Stanley.
Most cuts so far at European banks have focused on management or back office functions, and there’s little suggestion that deep investment banker redundancies are on the cards, particularly as banks prepare for a revival in dealmaking activity after a near two-year lull. However, headhunters told FN that many banks were taking a much more cautious approach about bringing in senior talent.
During its fourth quarter earnings call, Deutsche Bank chief executive, Christian Sewing said that the bank had “positioned ourselves for a recovery in origination and advisory” after its hiring spree. “Now, this is where we see considerable growth potential,” he added.
“Investment banking is a people business, so banks will be reluctant to let too much talent depart,” added Greenwood. “This could change — a recovery is possible, but there are still a lot of risks in the market.”
To contact the author of this story with feedback or news, email Paul Clarke
Financial services firms have been cutting jobs for the past year, with no signs of letting up.
Banks, asset managers and consultancies have all cut swathes of jobs in recent months.
City jobs dried up in the last quarter of 2023, with the number of available financial services roles falling 42% compared with the fourth quarter of 2022, according to Morgan McKinley’s London Employment Monitor.
During the post-pandemic deal boom many major finance firms went on hiring sprees, which left them overstaffed, and a slower job market has meant that fewer of those staff moved on.
READ Bankers, lawyers and accountants won’t quit, stoking fears of more job cuts
Morgan Stanley and PwC both pointed to lower staff attrition rates as part of their motivation for cutting jobs.
Banks have been characteristically brutal in their job cuts, and major disruption such as the merger of UBS with Credit Suisse and Citigroup’s radical overhaul are set to lead to thousands of roles going.
In recent months banks have been followed by asset managers, which are shedding jobs in a tough climate for active fund houses too.
Consultancy and accountancy firms have also cut thousands of jobs as demand for deal advice dries up in a slower market.
These are the banks, consultancy firms and asset managers cutting jobs:
Banks
UBS expects half of planned $13bn cost-cuts to come from employees
UBS rolls out fresh layoffs as Credit Suisse integration continues
Citigroup to cut 20,000 roles in Jane Fraser’s radical overhaul
Citigroup offers generous redundancy package to laid-off UK bankers
Barclays cut 5,000 jobs last year in cost-reduction push
Deutsche Bank to cut 3,500 more jobs in cost-cutting push
Nomura cuts 60 investment bank jobs in difficult dealmaking conditions
Societe Generale to axe 900 jobs in France
Rothschild-owned Redburn Atlantic cuts 20 staff amid UK equity drought
Asset managers
BlackRock to cull 600 jobs as it eyes ‘opportunities for growth’
Abrdn outflows top £12bn as group prepares to cut 500 jobs
Baillie Gifford to cut jobs after fixed income overhaul
Consultancy
EY launches fresh round of UK job cuts
EY is laying off US partners amid tough economic conditions
Deloitte UK to axe 100 jobs amid slow deals market
To contact the author of this story with feedback or news, email James Booth
Published: Feb. 14, 2024 at 5:32 a.m. ET
Shares of Tata Consultancy Services Ltd. 532540 slid 1.16% to 4,101.00 Indian rupees Wednesday, on what proved to be an all-around favorable trading session for the stock market, with the S&P BSE Sensex Index 1 rising 0.37% to 71,822.83.
Tata Consultancy Services Ltd. closed 83.55 rupees below its 52-week high (4,184.55 rupees), which the…
Shares of Tata Consultancy Services Ltd.
532540
slid 1.16% to 4,101.00 Indian rupees Wednesday, on what proved to be an all-around favorable trading session for the stock market, with the S&P BSE Sensex Index
1
rising 0.37% to 71,822.83.
Tata Consultancy Services Ltd. closed 83.55 rupees below its 52-week high (4,184.55 rupees), which the company achieved on February 9.
The stock demonstrated a mixed performance when compared to some of its competitors Wednesday, as MphasiS Ltd.
MPHASIS
fell 2.61% to 2,559.85 rupees and Wipro Ltd.
WIPRO
rose 0.57% to 514.50 rupees.
Trading volume (15,191) remained 167,497 below its 50-day average volume of 182,688.
Editor’s Note: This story was auto-generated by Automated Insights, an automation technology provider, using data from Dow Jones and FactSet. See our market data terms of use.