Wall Street Job Cut Bloodbath Now Expected!
Wall Street Job Cut Bloodbath Now Expected!
The Financial Times reports that UK 'think tank' The Centre for Economics and Business Research is now predicting that 6,000 City jobs will go next year, as firms reel from the credit crunch and the global economy hits a more difficult period.
Over in the US, a study released Thursday by Chicago employment consulting firm Challenger, Gray & Christmas has revealed that in the first 9 months of the year, the US financial services industry shed 129,927 jobs (compared to 34,903 in the same period in 2006). The Financial Times quotes Punk, Ziegel analyst Richard Rove, who predicts that Wall Street firms may eventually have to cut up to 10% of their TOTAL workforce due to the problems they are having in fixed income. The Daily Telegraph reports that recruiters Options Group has recently estimated that around a third of fixed income staff working on Wall Street will ultimately face the job axe.
Here's a note of who's said to have been chopping heads so far:
Bear Stearns - said this week that a further 310 jobs will go in mortgage origination. This is on top of the 240 job losses already announced.
Citi - in the midst of a restructure where 17,000 jobs are likely to be culled anyway. The company is said to be reviewing costs in the light of recent write-downs. More jobs are likely to go in the investment bank.
Credit Suisse - 220 job losses already announced over at the investment banking division, mostly in New York and mainly in fixed income.
Deutsche Bank - been a few job cuts at the edges, but the firm says that it is 'staying the course' and wants to be well-placed to capitalise when the markets pick up next year.
JPMorgan - strangely quite on the subject of write-downs and job cuts. The axe, however, is said to be being sharpened. Fixed income is likely to see casualties.
Lehman Brothers - already announced over 2,000 jobs cuts in its mortgage origination business, mostly in the US. More jobs are likely to go in fixed income before Christmas.
Merrill Lynch - already announced job losses in the US at its First Franklin mortgage origination business. Rumours abound that 15% of the firm's fixed income staff face the axe.
Morgan Stanley - 600 jobs will go in mortgage origination, 500 of them in the US. There are also rumours that the firm has canned its graduate recruitment plans for institutional securities for next year.
Royal Bank of Scotland - around 20 jobs gone at the firm's US structured finance business.
UBS - announced 1,500 job losses. This will come mostly from fixed income in the US and London. Around 350 London-based jobs are likely to go. Rumours that the firm is likely to pull out of investment banking completely to focus on private banking and fund management are thought to be wide of the mark (for the time being).
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posted by Victor Lloyd Smith @ 6:04 PM
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