More job cuts expected across European banks in 2016

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Regulation, anaemic economic growth and technology changes will force banks across Europe to find more savings in 2016, with jobs likely to be the biggest casualty, according to investors and analysts.

Reuters reports that ten of the region's biggest banks have announced staff cuts of 130,000 since June, according to data compiled by Reuters more than the total number of job losses announced by those banks in 2013 and 2014. But investors believe the industry will need to slim down further and faster to boost profits.

'The perpetrators of 2008 still need to pay a penance and must shrink balance sheets in so doing', said Jamie Clark, co-manager on the Liontrust Macro Thematic team, referring to the banking crisis that triggered a deep global recession from which several of the world's largest economies are still recovering.

'We read job cuts as only one sign of the secular, rather than cyclical trend to permanently smaller banks'.

To access the complete Reuters article hit the link below:

European banks poised for job cuts in 2016 profit drive

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