Wall Street is earning profits at the moment but that doesn’t mean jobs on the famous financial exchanges of New York are safe as Wall Street recruiters announced this week that “job creators” will be slashing 21,000 jobs from the securities divisions alone. Analysts predict that worldwide cuts will be even larger as big banks continue to finalize their downsizing plans with layoffs starting soon.
To put those numbers in perspective, the collapse of big banks in 2008 resulted in 28,000 positions being lost, however many of those jobs came from the collapse of Bear Stearns and Lehman Brothers who helped create the greatest financial jobs loss since the Great Depression.
Even while many banks have been reporting better than expected earnings the general feel on Wall Street is that the banks are over staffed and can cut their bottom line without suffering financial losses. In fact the Boston Consulting Group says banks believe they can cut 12% of their overall workforce in the “short-term” and still operate with increasing profits…
- UPDATE – Wall Street cuts jobs, 459,400 jobs in four years (jobmarketmonitor.com)
- Wall Street preparing to cut jobs (jobmarketmonitor.com)
- Large layoffs loom on Wall Street (finance.fortune.cnn.com)
- Wall Street to Slash 21K Jobs (newser.com)