Business

Wall Street to Cut 10,000 Jobs By The End of The year

Thomas DiNapoli, New York state’s comptroller, has just predicted that 10,000 financial industry jobs will be cut in NYC by the end of the year (via Bloomberg Businessweek).

“The securities industry had a strong start to 2011, but its prospects have cooled considerably for the second half of this year,” DiNapoli said in the Bloomberg article. “It now seems likely that profits will fall sharply, job losses will continue, and bonuses will be smaller than last year.”

New York Mayor Michael Bloomberg saw no reason to disagree with the numbers.

“We think our estimates are probably still reasonably accurate. So I don‘t think it’s dramatically worse than what we have in our budget, but it’s certainly not better,” he said in the Bloomberg report.

And most everyone is confident that the layoffs will greatly impact the city (if not the entire global financial industry).

“We do know that we’re going to have a tough time here. And we’re going to make sure that we preserve the vital services of the city,” Mayor Bloomberg said. “In the long term I couldn‘t be more optimistic about New York City but we’re going to have some short-term pain and it’s going to be real pain.”

Although the full extent of the layoffs aren’t known, Business insider has gone through and compiled the list of the most up-to-date data on Wall Street layoffs.

This is the list:

Wall Street to Cut 10,000 Jobs By The End of The yearUBS
Number of people cut so far: Unknown, but several lost their jobs in late August
Unit affected: IT staff, investment banking, asset management and wealth management
Location of layoffs: Switzerland and globally
Number of people expected to be laid off: 3,500—and today analysts are saying there could be an additional 1,700 in the investment bank
Reason for layoffs: The investment bank division is very troubled—and that was true even before the rogue trader.

Wall Street to Cut 10,000 Jobs By The End of The yearBank of America
Number of people cut so far: Unknown
Unit affected: Investment banking, trading and possibly other units
Location of layoffs: Globally
Number of people expected to be laid off: Up to 40,000 in future years under Project New BAC, 3,500 this quarter
Reason for layoffs: Big restructuring, continuing mortgage-asset and lawsuit woes.
Wall Street to Cut 10,000 Jobs By The End of The yearHSBC
Number of people cut so far: HSBC cut 700 jobs in its UK retail-banking arm in June
Unit affected: Retail operations, credit card arm and possibly other units
Location of layoffs: Europe, U.S., Hong Kong
Number of people expected to be laid off: 30,00 by 2013; 3,000 in Hong Kong alone in the next three years
Reason for layoffs: In addition to eurozone troubles, they’re on the hook for $6 billion in the mortgage lawsuits.

Wall Street to Cut 10,000 Jobs By The End of The yearGoldman Sachs
Number of people cut so far: Unknown, but layoffs happened in early July and another round started last week in London, San Francisco, and New York affecting “‪senior associate levels”
Unit affected: Employees speculate that a number of the cuts will be/were in equities
Location of layoffs: 230 in New York City; 1,000 globally
Number of people expected to be laid off: 1,200, maybe more—one source told Business Insider they plan to let go fully 20 percent of their investment banking and securities operation
Reason for layoffs: A filing with the New York State Department of Labor lists the reason behind the 230 New York layoffs as “Economic.” Goldman just had their second quarterly loss ever.

Wall Street to Cut 10,000 Jobs By The End of The yearDeutsche Bank
Number of people cut so far: Unknown, but people were cut in June.
Unit affected: A source at the bank told us some big names were cut, he knew of about 5, and for every big trader let go, it means 10 people in the back-office left.
Location of layoffs: New York, probably elsewhere
Number of people expected to be laid off: Up to 500
Reason for layoffs: Missing Q3 and full-year profit targets, is taking big writedown on Greek debt

Wall Street to Cut 10,000 Jobs By The End of The yearCredit Suisse
Number of people cut so far: Unknown, but it looks like they started this week in Zurich
Unit affected: Investment banking, sales and trading, equity, debt, operations
Location of layoffs: Globally
Number of people expected to be laid off: 2,000
Reason for layoffs: The deadly cocktail of eurozone regulation, sovereign debt struggles, and widespread investment banking losses

Wall Street to Cut 10,000 Jobs By The End of The yearMorgan Stanley
Number of people cut so far: Unknown
Unit affected: Brokers, wealth management, fixed income, and equities.  A source told us the bank will also fire 20 percent of managing directors in research by the end of the year.
Location of layoffs: “A lot” in New York and elsewhere.

Number of people expected to be laid off: “300 ‘underperforming financial advisors.’” Fox reported (via Reuters) a source’s statement that there would be thousands more, which Morgan Stanley denied.
Reason for layoffs: Reuters reports that analysts expect layoffs because “the outlook for Morgan Stanley’s bread-and-butter businesses—trading, deal making, and wealth management—has deteriorated in recent months.”

Wall Street to Cut 10,000 Jobs By The End of The yearBarclays
Number of people cut so far: 1,400
Units affected: BarCap and U.K. consumer unit
Location of layoffs: U.K. and globally
Number of people expected to be laid off: 3,000
Reason for layoffs: Eurozone crisis, profit drop, cost-cutting

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(H/T Business Insider)

Comments (18)

  • haras42000
    Posted on October 24, 2011 at 1:43am

    OH GREAT they will all probably get bonuses too!!!!

    Report Post »  
  • affinnity
    Posted on October 23, 2011 at 12:59pm

    Why is 10,000 fewer high income taxpayers a good thing?

    Report Post » affinnity  
  • mike_trivisonno
    Posted on October 23, 2011 at 10:36am

    I like how they make sure we all know that bonuses will be smaller, too.

    Smaller bonuses! OMG.

    Report Post » mike_trivisonno  
    • Ruler4You
      Posted on October 23, 2011 at 12:50pm

      Bonuses smaller than last year? Wait, there were record bonuses last year; because of obama money, bailouts, debt buyouts and foreclosure sales. How can that be?

      Report Post » Ruler4You  
  • qzak491
    Posted on October 22, 2011 at 9:53pm

    All this will accomplish is to add 10,000 ligitimate protesters to the paid ones already there.

    Report Post »  
  • Bernard
    Posted on October 22, 2011 at 6:31pm

    As the saying goes “you sow what you reap”. Wall street contributed heavily to the Obama Presidential elections. Somewhere around 80% to Obama verses 20% to the Republicans. Hope they are forced to drink gruel for Christmas

    Report Post »  
  • Maidoff101
    Posted on October 22, 2011 at 9:39am

    Tarp,Stimus 1, and 2, QE 1,and 2. W.S. has been pumped up buy taxdollars long enough. Time to let the chips fall.

    Report Post »  
  • Bill Rowland
    Posted on October 22, 2011 at 6:56am

    Snow Leopard I usually agree with what you have to say, you have some
    very astute comments, but this is a case where no one wins. OWS may claim credit but credit goes to Obumbler and his administration.

    OMG

    Report Post »  
  • tifosa
    Posted on October 22, 2011 at 6:28am

    Gee, I wonder what’s going on, since some are sitting on record profits…. oh yeh, http://www.teapartynation.com/profiles/blog/show?id=3355873%3ABlogPost%3A1566647&xgs=1&xg_source=msg_share_post

    Report Post » tifosa  
    • GTH
      Posted on October 22, 2011 at 7:56am

      This explains why the dow has been in a huge rally. They’re all trying to save their jobs.
      “Look BOSS! I can make you money, please don’t fire me.”
      It’s all a fake though. Nothing is going on in the small business world. The dollar is worth zip and americans cannot compete with chinese manufacturing. Sure american investards are making money in china. One guy reports that, GE and Cat are selling tons to china so we can see that there is a balance of trade going on. Oh yeah? How about the american co. that makes and sells lets say “cargo straps” or “sleeping bags” or sneakers? Yep! were shipping a lot of those out to china, right?
      America is TOAST because of NAFTA. Put a fork in us.

      Report Post »  
  • cdcats8
    Posted on October 22, 2011 at 5:45am

    How can so many lose their jobs and others get bonuses?

    Report Post »  
  • Look4DBigPicture
    Posted on October 22, 2011 at 12:30am

    When Wall Street goes down … we ALL go down. The poor will be starving in the streets and the middle class will become the struggling poor. Let‘s pray the world can get it’s act together and the greedy moochers all over the world wake up to reality and quit asking for handouts.

    Report Post »  
    • jzs
      Posted on October 22, 2011 at 4:32am

      Wall Street is making record profits. They CEOs and management are getting big bonuses. And they are getting rid of people. So much for the “job creator” idea.

      Report Post » jzs  
    • tsar
      Posted on October 24, 2011 at 10:36am

      people should n’t be allowed .. Obama oughtta hire them himself, as workers for the DNC

      Report Post »  
  • sillyfreshness
    Posted on October 22, 2011 at 12:06am

    The newly laid off Wall Streeters can join up and become part of the OWS crowd. On a more serious note, this is actually pretty serious stuff. Here it is 3 years post-bailout and these famous mega banks are still in trouble and maybe just as bad off as they were 3 years ago. All that bailout did was postpone the inevitable. It bought some time, but didn’t fix the problem. The next time they falter, there won’t be anymore bailouts. The US put itself in mega debt to help these banks and they aren’t going to do it a 2nd time…..we don’t even have the money to do it anymore. This time if and when they fall, they are going to fall hard. I still think in 2012 we could see the collapse. I have a broker friend who says the stock market charts are indicating a crash in 2012. This Euro crisis just won’t go away. Greece is dragging down Europe and the spoiled people in Greece are burning down buildings because they are being asked to take only 9 weeks vacation pay instead of 12. Europe will fall. Political correctness has finally caught up to them. Allowing radical Muslims to invade them combined with their socialism has finally wore that place down beyond the point of no return. It could also come to the US as well. I think 2012 will be every bit as bumpy as many think the Mayan calender predicts. All indicators are pointing to it so far including the natural disasters as of late.

    Report Post » sillyfreshness  
  • mrbuff1959
    Posted on October 21, 2011 at 11:56pm

    10, thousand i call that a good start. Let amarica go back to the people that build and create, not the ones who just take.

    Report Post » mrbuff1959  
  • ZengaPA65
    Posted on October 21, 2011 at 11:15pm

    Tell em anything to get the protesters off Wall St.

    Report Post » ZengaPA65  
  • Snowleopard {gallery of cat folks}
    Posted on October 21, 2011 at 11:01pm

    And now both Mr Obama and the OWS radical progressive protesters will claim to have won.
    http://artinphoenix.com/gallery/grimm (cat folk gallery)

    Report Post » Snowleopard {gallery of cat folks}  

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