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

"It now seems likely that profits will fall sharply, job losses will continue, and bonuses will be smaller than last 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:

UBS

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.

Bank 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.

HSBC

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.

Goldman 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.

Deutsche 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

Credit 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

Morgan 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."

Barclays

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)

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