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Banking industry

Outplacement Firms Face Challenges Amidst Industry Downturn

Strategic Insights

— 1 min read

As the banking industry undergoes significant changes, particularly with the merger between Barnett Banks Inc. and NationsBank, outplacement firms are struggling to stay afloat. The high employment levels of the 1990s have led to a decline in demand for their services, forcing some companies to close offices and rebrand. At the same time, the changing landscape of the industry is prompting companies to reassess their personnel and optimize functions.

Key Takeaways:

  • Barnett Banks Inc. will use its own employees to staff an out-placement service to help dislocated employees, potentially disrupting the outplacement industry.
  • The industry is experiencing tough times due to high employment levels in the 1990s, leading to a decline in demand for outplacement services.
  • Two well-known industry leaders, Right Management Consultants Inc. and Drake Beam Morin Inc., have closed offices this year, with Right Management Consultants closing 10 offices and Drake Beam Morin closing 15.
  • The Association of Outplacement Counseling Firms International has rebranded as the Association of Career Management Consulting Firms International.
  • Barnett Banks Inc.'s CEO, Paul Kerins, will retire after the merger is finalized, and two executives, Tim Little and Dale Cassidy, will move up to important credit policy roles in Florida.
  • Mitch Montagna, public voice of AT&T Universal Card Services, will leave Jacksonville to join Lucent Technologies in New Jersey, marking his move to a new job at the end of December.

Statistics:

  • 10 offices closed by Right Management Consultants Inc. this year
  • 15 offices closed by Drake Beam Morin Inc. this year
  • 1 month ago, Barnett Banks Inc. announced that Paul Kerins will retire after the merger is finalized
  • 2 well-known industry leaders have closed offices this year, indicating tough times in the industry
  • The heat of the downturn has triggered a significant rebrand for the industry, announced by the Association of Outplacement Counseling Firms International as the Association of Career Management Consulting Firms International in October.

Sources:

  • "Philadelphia Inquirer"
  • Paul Kerins, chief human resources executive, Barnett Banks Inc.
  • Association of Outplacement Counseling Firms International (renamed as Association of Career Management Consulting Firms International)
  • Right Management Consultants Inc.
  • Drake Beam Morin Inc.
  • Tim Little, head of credit policy for north Florida, Barnett Banks (recently merged with NationsBank)
  • Dale Cassidy, head of credit policy for central Florida, Barnett Banks (recently merged with NationsBank)
  • Mitch Montagna, public voice, Jacksonville's AT&T Universal Card Services

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