Newspaper article The Evening Standard (London, England)

Second Wave of Banking Job Cuts as Crunch Pain Spreads

Newspaper article The Evening Standard (London, England)

Second Wave of Banking Job Cuts as Crunch Pain Spreads

Article excerpt

THE City is braced for another massive round of job cuts as investmentbanks accelerate their cost-cutting in the face of credit-crunch losses.

Goldman Sachs and Citigroup are axing thousands of jobs worldwide, with bothset to cut their headcount by up to 10% in some divisions.

Goldman, which has fared much better than most rivals through the creditcrunch, is already laying off experienced bankers in its mergers andacquisitions and corporate fund-raising departments. The cuts come on top ofGoldmans annual 5% cull of what it deems to be its worst-performing staff.

The bank reduced its headcount by 400 between the first and second quarters ofthis year, but the latest round of cuts is likely to be far more severe.

Citigroup is set to start firings as early as today, with a reported 6500 ofits 65,000 investment banking employees likely to go. The Wall Street-basedbank has lost $15 billion ([pounds sterling]7.6 billion) through subprime and credit-crunchwrite-offs since last summer and is expected to have made further big losses inthe second quarter of this year. …

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