Banks need another 40,000 job cuts says Roland Berger Strategy

Roland Berger Strategy, one of the world’s leading consulting firms, said the global investment banking sector would need another 40,000 job cuts to restore sustainable economics.

The sector has already stepped up restructuring programmes, reduced headcount by about 15,000 since mid-2011 and has announced another 25,000 job cuts.

According to a report issued by the consultancy firm, these cuts will take a year or two to fully translate into improved profits. A further 40,000 jobs could be on the line in the next few years.

“Restructuring will need to a move from tactical reductions to more radical redesign and refocusing,” said Markus Boehme, senior partner at Roland Berger Strategy.

“Most efforts have been focused on increasing productivity, with very little capacity exiting, but we are now seeing a change.”…

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via ‘Global investment banks need 40,000 job cuts’ – Rediff.com Business.

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