Concerns over BarCap's equities IT hiring spree

With BarCap poised to make 200 redundancies in the UK, there are concerns that its equities and equity derivatives IT functions, where it's been aggressively recruiting over the last 18 months, could be included in the cuts.

In the front office, BarCap's build out of its equity business has been ongoing for some time, but it's also been hiring to ensure an adequate technology platform to back this up.

Following the recruitment of Clive Hawkins, as regional head of equities IT and John C. Smith, a managing director in the cash equities IT team (both from UBS), in mid-2009, recruiters suggest that there's been something of an aggressive hiring spree lower down the ranks.

Some senior departures and redundancies this week within its equities division, have led to questions about the need to upgrade BarCap's flow equity derivatives system and therefore a requirement to recruit in this area.

However, headhunters are currently suggesting that the equities technology division could be a target for cuts, simply because headcount has expanded so rapidly over the last 18 months.

"Inevitably, when you recruit to that extent not everyone you've hired is going to work out," says one recruiter. "There are concerns that the cost-cutting initiative could lead to some redundancies in equities IT functions."

Despite these concerns, some new job opportunities are being created within its equities technology functions including application support, business analyst and project management positions.

However, headhunters close to the situation claim that the majority of hiring in equities IT is now complete, and pressure is building on the technology teams to start delivering on the projects.