From Big Four to Babcock and back

Just what are all those Babcock & Brown bankers going to do now that most of them are getting the boot? B&B plans to cut 850 jobs by 2010, leaving it with just 650 employees. That's if it survives at all.

Macquarie is trimming too, just more quietly. "By the end of next year we might see thousands being let go from Macquarie, but they won't make a big announcement. They'll just do it a few at a time," says a headhunter who did not want to be named.

For former B&B and Big Mac high flyers, the next career move might be back from where they came from - the retail banks. When the market was strong Babcock and Macquarie were able to attract top people from the project deal teams of other firms with the prospect of better bonuses, says Anton Murray, director of Anton Murray Consulting.

"The skills learned at Babcock and Macquarie, and the talent within those businesses, are some of the best in Australia, and we would expect to see some movement of this talent to the Big Four retail banks, given that these businesses have cheaper access to funding, with their strong balance sheets and credit ratings," he adds.

The Big Four have traditionally been the training ground for project and infrastructure corporate finance executives. "Now is their opportunity to recruit the talent back," says Murray.

Jason Cartwright, general manager of client services at Link Recruitment, agrees: "The investment banks in Australia aren't doing much hiring at the moment, so Babcock people will have to consider the retail banks."

Cartwright doesn't think the tarnished Babcock brand will be detrimental to its employees' careers. "Other banks are reasonably realistic and assess candidates on their merits, just like they did with Lehman people," he adds.

But one recruiter, who unsurprisingly wanted to remain anonymous, has little sympathy for B&B's top brass: "There are a lot of egos involved there who never gave me the time of day in the past, so who cares what happens to them now. They were so arrogant and thought they were masters of the universe. They never even bothered speaking to a recruiter. Now they're going to have to."