Wall Street firms must cut more jobs to boost their return on equity and satisfy shareholders, said Meredith Whitney, a banking analyst and founder of Meredith Whitney Advisory Group LLC.
“The biggest layoffs are ahead of us,” Whitney said in a Bloomberg Television interview today with Tom Keene, Sara Eisen and Scarlet Fu. “It’s no fun, it’s painful but you have to downsize dramatically, get more efficient on every single line of business.”
The six largest U.S. banks reported $43.3 billion in total first-half profit, the most since 2007, as revenue climbed for the first time in four years. Lenders including Citigroup Inc. (C:US) and Morgan Stanley, both based in New York, are leaning on expense savings from job cuts to improve profits, announcing plans in the first three months of this year to eliminate about 21,000 positions, or 1.8 percent of their combined workforce, according to data compiled by Bloomberg.
Whitney, 43, said last July in a Bloomberg TV interview that the banking industry would probably need to shed an additional 50,000 jobs to bring headcounts in line with revenue.
Chosen excerpts by Job Market Monitor. Read the whole story at
via Wall Street’s Biggest Job Cuts Yet to Come, Whitney Says – Businessweek.
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