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12,000 more jobs to go before Christmas

Just in case anyone was still under the impression that jobs in financial services are for life, the Confederation of British Industry and PricewaterhouseCoopers have come out this morning and shattered their illusions.

A survey of CBI members suggests they’re planning to cut 12,000 jobs between now and Christmas, up on the 8,000 removed during the same period last year and an acceleration on the job cuts of the past three months.

Pessimism about business conditions is prompting the reduction in headcount: 99% of financial services respondents now think it will take more than six months before normal market conditions prevail.

The survey covers everything from high-street banking to insurance and fund management, so it’s not only investment bankers who are in danger of being axed. Until recently, fund managers remained optimistic in the face of adversity, but this appears to be changing: last year, +93% thought business would improve in the next three months; this year, that’s fallen to -100%.

Comments (3)

  1. we are far from the days when “normal market conditions prevail” much more than 6 months and it will be far worse in the UK…just think about how much our economy relies on credit…much more than any other country…I mean which other country has a society that is truly in bed with the flexible friend the credit card…there are thousands upon thousands of people who have debt they will never pay off and this is because credit card companies keep on giving them credit. Someone earns 20k but is able to command 5-6k in credit card limits…plus he/she can have more than one credit card….all this credit card debt is securitized…so when everyday Joe defaults on their re-payments watch how bad the ripple effect will be…The question is not “when will things start to improve?” but “when will things stop getting worse?” same question? No…the latter is more likely to be able to be forecasted…not accurately but with simple class economic room theories coming into effect, you will see professionals saying its going to be well over a year before things get better; mind you the cash rich will be laughing and the poor just getting poorer because of the problems the rich have caused

  2. but I thought Sarah says everybody is hiring…

  3. Two weeks ago I said that banks such as JPMorgan, Morgan Stanley, Deutsche, Goldman and ‘Japanese houses’ were hiring selectively. That’s not everyone. And they may not be hiring still.

    Sarah, Editor, eFinancialCareers Reply

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