The Biggest Job Cull Yet

Despair Statue

For those of you keeping the score, here's the latest on the job loss tally this round of cuts.

Credit Suisse - 75

Bank of America Merrill Lynch - 400

Barclays Capital - around 400

And now Royal Bank of Scotland Global Banking & Markets - 500

The Financial Times reports that RBS has already begun culling up to 500 staff in its investment banking unit, taking the total number of job losses at the bank to around 27,000 in the last 2 years. The latest cuts, which are thought to effect predominantly London-based staff, will be in back office support functions.

A bank spokesperson said:

'We continue to make efficiencies across our business to ensure that we have the right people and resources in place to meet our client needs.

'We will do all we can to support, offer redeployment opportunities wherever possible and keep compulsory redundancies to an absolute minimum'.

The reality, however, is that the firm will find it difficult to redeploy the staff who face losing their jobs, as they are relatively expensive when compared to other areas of the bank.

And although the current layoffs are restricted to back office staff, insiders fear that other areas of the bank could be impacted unless market conditions quickly improve.

In the meantime, Fox Business Network's Charlie Gasparino has reported that Morgan Stanley imposed a hiring freeze a month ago, and that, although the firm has no immediate plans for layoffs, staff fear that job cuts are likely at or near the year-end. Bonus payments are also thought likely to be significantly down on 2009.

The hiring freeze itself is said to be restricted to the investment bank, as the wealth management unit hasn't lost its headcount and is expected to continue to make opportunistic financial adviser hires from rivals as it beefs up the business.

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