John

MSNBC: up to 200,000 banking jobs may be lost

In News on April 3, 2008 at 6:39 am
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pic courtesy wikimedia

MSNBC excerpt:

Analysts at the financial research firm Celent LLC said in a report Tuesday that it expects the U.S. commercial banking industry — essentially, all companies that lend or collect deposits — to lose 200,000 of its 2 million jobs over the next 12 to 18 months.

Octavio Marenzi, the head of Celent’s financial consultancy unit, said more layoffs are inevitable as the subprime crisis hits other parts of the banking industry and spreads beyond mortgages to mortgage-related products, such as home-equity loans, and other types of lending, such as credit cards.

Many banks that have reported huge losses have so far not announced significant layoffs outside the mortgage area, Challenger added. Just Tuesday, Swiss bank UBS AG — which has a big portion of its staff in the United States — said it lost more than $12 billion in the first quarter.

The investment bank Bear Stearns Cos. has 14,000 staffers, and JPMorgan Chase & Co., the company buying the investment bank, has not yet announced how much of that staff it intends to keep. Meanwhile, Citigroup Inc. officially announced in January it was cutting 4,200 jobs globally, mostly in its investment banking business, but said there are more layoffs to come.

Although its a US centric report, this will inevitably have repercussions on us as well.  10 months ago, some of the best salaries on offer for financial service professionals were in banks.  10 MONTHS ago! They also don’t come much bigger than the banks mentioned here…UBS, Citigroup, JP Morgan etc etc.  Its gonna be a challenging 2008 and 2009.

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