12,000 more jobs to go before Christmas

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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%.