Experts have forecast that job cuts in the City will reach 40,000 by 2010. Several leading banks have been forced to slash thousands of jobs in the past year as the credit crunch takes its toll. Banks such as Citigroup and Credit Suisse have been forced to make huge write downs, and the contraction of some divisions has forced banks to cut thousands of jobs. By June this year, just under 17,000 job cuts had taken place in the City, though Deutsche Bank’s Chief UK Economist, George Buckley, confirmed that banks would become more aggressive in firing employees in the coming year. Buckley said, ‘Come the end of this year, we will start to see some fairly aggressive rises in unemployment’.
The job losses are expected to exceed the losses seen in previous economic slowdowns, with around 15,000 jobs lost in London between 2001 and 2002. The City’s current predicament is made to look worse when compared with the situation in other European financial centres. Experian forecast that Barcelona, Madrid and Zurich are each expected to cut little more than 3,000 jobs each between 2007 and 2010, whilst Dusseldorf, Frankfurt, Milan and Rome will slash no more than 2,000.
Job Cuts to Rise in Banking Sector
Job Cuts to Rise in Banking Sector
Wed, 03 Sep 2008
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