City Jobs Gloom as Merrill Cuts Costs by Pounds 150 Million

By Andrew Garfield and John Willcock | The Independent (London, England), September 29, 1998 | Go to article overview
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City Jobs Gloom as Merrill Cuts Costs by Pounds 150 Million


Andrew Garfield and John Willcock, The Independent (London, England)


MERRILL LYNCH cancelled its Christmas party and warned of bonus cuts yesterday as part of a drive to save pounds 150m a year because of the market turmoil that has slashed the earnings of City investment banks.

City gloom deepened as Daiwa Securities, which has lost nearly $1bn worldwide this year, issued P45s to 50 redundant staff, marking its second round of cuts this year.

In August the bank shed around 65 staff, or around 10 per cent of the total.

Staff at Daiwa were notified individually yesterday about the job terminations. A spokeswoman said last night that a formal statement confirming the redundancies will be made today, but dismissed a rumoured figure of 400 job losses as "ridiculously high".

Merrill Lynch, meanwhile, has yet to decide on how many of its 6,000 City-based staff jobs will be cut. But staff have been ordered to cut back on transport and entertaining spending by not flying first class, and by clearing expense account lunches in advance.

The latest cutbacks came just days after Banco Santander, the Spanish bank which took on the research arm of crashed Hong-Kong broker Peregrine earlier this year, announced 300 jobs were going in its investment banking offices in London, Hong Kong and New York.

On Friday West Deutsche Landesbank said it would retrench its London- based emerging markets business at a likely cost of 150-200 jobs.

In July, Nikko put 400 staff in the City on six months notice because of duplication with research teams at Salomon Smith Barney, although as many as 100 may have already found jobs elsewhere.

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