Job Loss Tally Increases As More Firms Wield Axe

It's commonly estimated that 170,000 financial markets jobs have already been lost / announced in the last 12 months (at banks, brokers, hedge funds, and asset / mutual funds). Many feel, however, that we are only halfway through, and that another 170,000 jobs will be cut before this crisis has played out.

And The Times reports that that industry experts are predicting that some 4,000 UK jobs in fund management are likely to go before the end of March 2009. In the meantime, Reuters reports that financial markets firms based in New York cut 16,000 jobs last month, taking the headcount total back down to 2005 levels.

Bloomberg quotes a 'person familiar with the situation' who claims that JPMorgan is to layoff 3,000 staff in its investment banking division. Some staff are thought to have already been told that the jig is up. The lay-offs are thought likely to be made across the board, in all regions and in all businesses, including equities, commodities and corporate finance. Another source has told the news agency that the firm is likely to freeze base salaries next year for staff earnings over $60 - $70,000.

And Reuters reports that Bank of New York Mellon confirmed Thursday that it is to cut 1,800 jobs, or about 4.2% of its 43,000 global workforce. The cull will start in January and continue through 2009. CEO Robert Kelly said in a statement: 'It has become clear that we need to take additional steps beyond our merger synergies to reduce expenses, given weakness in the global economy'.

The news agency also reports that TD Securities is cutting a further 20 -40 jobs as it cuts back on its appetite for risk. And The Wall Street Journal reports that Citi is to cut 1,000 staff in India as part of its recently-announced 52,000-person cull. Although most of the cuts will come from lending arm CitiFinancial India, the corporate and investment banking unit will also be affected.

Finally, The Independent reports that asset manager Gartmore has confirmed that it is cutting between 60 - 75 jobs in a bid to further rein-in its cost base. Most of the cuts will come in the UK.

Please use the 'E-Mail' button immediately under the article title to send this item to a friend.

JefferiesAnd the Best Place to Work in the global financial markets 2018 is...

Register for HITC Business News