The Financial Times has reported that several large investment banks are getting ready to wield the job axe, as industry staffing levels look set to fall back in Europe to 1996 levels.
The FT's sources say that UBS is looking at further streamlining its investment banking operations, and that Credit Suisse could cut 1,000 jobs as a result of its latest cost-cutting drive (announced in July), most of which will be in investment banking.
Deutsche Bank announced 1,900 job cuts in July (including 1,500 in investment banking), but the newspaper says that analysts expect additional cuts this year.
In the midst of economic headwinds, increased capital requirements and more regulation, investment banking units are now cutting back on marginal businesses, and moving away from attempting to provide a comprehensive global investment banking offering.
Barclays is currently undertaking a review of all its operations, and many expect that its investment banking unit will be scaled back. RBS is several years into a strategic plan to reduce the size and scope of its investment banking operations, and continues to reduce the size of the business.
One banker told Here Is The City: 'The chickens have finally come home to roost. A combination of greed, scandal and economic malaise has put paid to the good times forever'.