More cuts could be on the way.
Just be glad you have a job.
Bloomberg News reports that’s the message London’s investment banks will be giving their staff this year, with bonus pools set to be cut by at least a quarter, as the U.K.’s decision to leave the European Union stymies dealmaking and threatens higher costs from moving staff, executives and recruiters said.
Some bankers won’t even be that lucky, as a further round of job cuts in London are likely in September if client activity doesn’t pick up, according to multiple banking executives, who asked not to be named discussing personnel matters.
The Brexit vote has already resulted in turbulent markets and may put a chill on investment, another problem for European banks like Deutsche Bank, Barclays and Credit Suisse that are in the midst of dramatic reorganizations. The result will be an increase in “donut” bonuses - in other words, zero - for this year, and a broader review of compensation to cut costs in coming years.
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