Revenues of big executive search firms tumble 30-40% - EIU report
But the picture was worse in the US, and towards the end of 2001 the overall revenues of most global search firms were running an estimated 30-40% lower than they were a year earlier.
"Global search firms are laying off staff, with larger firms downsizing by over 30%," the report added. Those with significant e-business, technology and investment banking businesses suffered the most.
In Europe, the worst hit markets were the UK and Germany. The least affected were France, Italy, the Netherlands, Spain, Sweden and Switzerland. The UK suffered particularly in financial services.
After strong growth in 2000 in e-business and IT, the market has now shifted back to basic sectors such as consumer, retail, healthcare and biotechnology, said the Executive Search in Europe 2002 report.
To survive the downturn, a number of search firms have been diversifying into related fields such as management appraisal, executive coaching, leadership training and 'talent management', the survey said.
The two biggest firms by global revenues, Heidrick & Struggles and Korn/Ferry, endured several rounds of downsizing in 2001 after some aggressive acquisitions in 1999 and 2000.
However Egon Zehnder avoided making sizeable layoffs and nearly all its offices hired new consultants, the report said.
At Spencer Stuart, "business fell by 19% year on year and globally in 2001, but this follows strong growth of 30% in 2000," said the survey.
