Over 30,000 financial jobs cut in Europe
Source: Bloomberg News |
October 10, 2012, Wednesday
|
Print Edition
Print Edition
FINANCIAL job losses in western Europe surpassed 30,000 this year as firms including Royal Bank of Scotland Group Plc and UBS AG cut positions amid the sovereign debt crisis.
While the 33,437 reductions are less than half of the 76,654 made in the region during the same period a year ago, analysts expect the cuts to increase. Financial firms have announced over 60,000 cuts globally so far this year, data compiled by Bloomberg Industries show.
"Last year's cuts were designed to deal with the new market paradigm," said Christopher Wheeler, a London-based analyst at Mediobanca SpA. "This year's cuts show how much deeper the banks have had to go. Job losses will continue through year-end as banks focus on costs rather than revenues, given the current environment."
Firms in the City and Canary Wharf, London's financial districts, and lenders across Europe are cutting more employees as the sovereign debt crisis triggers a slump in trading, stock and bond offerings. The 17-country eurozone economy will contract 0.4 percent this year, and grow 0.2 percent in 2013, less than the 0.7 percent predicted three months ago, the International Monetary Fund said yesterday.
"Some banks might expect, and others hope, that the world economy will pick up again next year," said Tom Kirchmaier, an expert at the London School of Economics. "In reality, much will depend on how the markets will be fairing in the coming years to determine whether the pain is behind, or in fact still ahead of us."
RBS, Britain's biggest government-owned lender, has said it will cut 300 more jobs.
While the 33,437 reductions are less than half of the 76,654 made in the region during the same period a year ago, analysts expect the cuts to increase. Financial firms have announced over 60,000 cuts globally so far this year, data compiled by Bloomberg Industries show.
"Last year's cuts were designed to deal with the new market paradigm," said Christopher Wheeler, a London-based analyst at Mediobanca SpA. "This year's cuts show how much deeper the banks have had to go. Job losses will continue through year-end as banks focus on costs rather than revenues, given the current environment."
Firms in the City and Canary Wharf, London's financial districts, and lenders across Europe are cutting more employees as the sovereign debt crisis triggers a slump in trading, stock and bond offerings. The 17-country eurozone economy will contract 0.4 percent this year, and grow 0.2 percent in 2013, less than the 0.7 percent predicted three months ago, the International Monetary Fund said yesterday.
"Some banks might expect, and others hope, that the world economy will pick up again next year," said Tom Kirchmaier, an expert at the London School of Economics. "In reality, much will depend on how the markets will be fairing in the coming years to determine whether the pain is behind, or in fact still ahead of us."
RBS, Britain's biggest government-owned lender, has said it will cut 300 more jobs.
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