Deutsche Bank yesterday, and another top firm today.
Bloomberg News reports that Bank of America is cutting jobs across co-Chief Operating Officer Thomas Montag’s global trading and investment banking units, according to three people with direct knowledge of the decision.
The dismissals will affect fewer than 5% of employees in the units, said one of the people, who requested anonymity because the moves haven’t been made public. Some staff members volunteered to go, the people said.
Banks have been cutting workers for the past five years and still haven’t settled on the right workforce size amid stagnant revenue and tougher regulation. JPMorgan Chase and Citigroup warned investors that trading revenue so far in the first quarter, when firms typically earn the most from that business, was down about 15%.
'Wall Street may be in the seventh inning of what it is going to be post-crisis', said Richard Lipstein, managing director of New York-based recruiting firm Gilbert Tweed International. 'This is an ongoing process that occasionally results in a material number of layoffs. In fixed income, they’re looking at a shrinking business and figuring out how to match expenses and headcount with revenue'.
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