Beleaguered European banks to slash more jobs
Source: Bloomberg News |
November 2, 2011, Wednesday
|
Print Edition
Print Edition
EUROPEAN banks are accelerating jobs cuts as the region's debt crisis shrinks revenue and regulators force financial firms to bolster capital.
Credit Suisse Group AG, Switzerland's second-biggest bank, said yesterday it will eliminate about 1,500 jobs, adding to the 2,000 staff cuts the Zurich-based lender announced in July. Danske Bank A/S, Denmark's largest lender, will also trim 2,000 posts. Barclays Plc Chief Executive Officer Robert Diamond said on Monday that the London-based bank had eliminated 3,500 positions this year and that the trend will continue.
European banks may be forced to eliminate more positions as the sovereign debt crisis erodes earnings and higher capital requirements imposed by regulators force lenders to sell assets and shrink their balance sheets. West European banks have cut more than twice the number of jobs as their United States peers, eliminating 86,273 positions this year, compared with 36,951 in America, according to data compiled Bloomberg Industries.
"The years of plenty are well and truly behind us," said John Purcell, founder of executive search firm Purcell & Co in London. "Old models and underlying beliefs are being fundamentally examined. It's a once-in-a-generation challenge."
Credit Suisse, UBS AG, Deutsche Bank AG and Barclays have already disclosed plans to shrink their combined risk-weighted assets by as much as US$415 billion to prepare for the stricter capital requirements under the Basel III rules, filings show.
"Further job losses are inevitable as banks continue to try to be proactive in dealing with the worsening climate and the concerns that the current market and economic malaise is likely to continue for an extended period," said Christopher Wheeler, a London-based analyst with Mediobanca SpA.
Credit Suisse Chief Executive Officer Brady Dougan, 52, said yesterday volatility in the markets is "similar" to the 2008 crisis. He is cutting jobs and reorganizing the lender's securities unit after the division reported its first quarterly loss since 2008.
At Barclays, headcount fell "about 3,500" so far this year, Diamond said on a conference call on Monday. "There's no specific headcount plan. I think what you'll see is a continuation of the kind of trends you've seen."
Danske is cutting jobs to cut costs by 2 billion kroner (US$368 million) over the next three years, the Copenhagen-based bank said yesterday after it reported its first quarterly loss since the height of the crisis more than two years ago.
UBS, Switzerland's biggest bank, and Deutsche Bank, Germany's biggest, last week said more jobs may be cut.
Deutsche Bank Chief Financial Officer Stefan Krause said on October 25 the lender will continue to adjust its "platform" if the challenging environment persists. The bank announced 500 job cuts earlier that month.
His counterpart at UBS, Tom Naratil, said the same day his firm's plans to reorganize its investment bank may lead to a lower headcount at the unit, though that won't necessarily entail job cuts.
Credit Suisse Group AG, Switzerland's second-biggest bank, said yesterday it will eliminate about 1,500 jobs, adding to the 2,000 staff cuts the Zurich-based lender announced in July. Danske Bank A/S, Denmark's largest lender, will also trim 2,000 posts. Barclays Plc Chief Executive Officer Robert Diamond said on Monday that the London-based bank had eliminated 3,500 positions this year and that the trend will continue.
European banks may be forced to eliminate more positions as the sovereign debt crisis erodes earnings and higher capital requirements imposed by regulators force lenders to sell assets and shrink their balance sheets. West European banks have cut more than twice the number of jobs as their United States peers, eliminating 86,273 positions this year, compared with 36,951 in America, according to data compiled Bloomberg Industries.
"The years of plenty are well and truly behind us," said John Purcell, founder of executive search firm Purcell & Co in London. "Old models and underlying beliefs are being fundamentally examined. It's a once-in-a-generation challenge."
Credit Suisse, UBS AG, Deutsche Bank AG and Barclays have already disclosed plans to shrink their combined risk-weighted assets by as much as US$415 billion to prepare for the stricter capital requirements under the Basel III rules, filings show.
"Further job losses are inevitable as banks continue to try to be proactive in dealing with the worsening climate and the concerns that the current market and economic malaise is likely to continue for an extended period," said Christopher Wheeler, a London-based analyst with Mediobanca SpA.
Credit Suisse Chief Executive Officer Brady Dougan, 52, said yesterday volatility in the markets is "similar" to the 2008 crisis. He is cutting jobs and reorganizing the lender's securities unit after the division reported its first quarterly loss since 2008.
At Barclays, headcount fell "about 3,500" so far this year, Diamond said on a conference call on Monday. "There's no specific headcount plan. I think what you'll see is a continuation of the kind of trends you've seen."
Danske is cutting jobs to cut costs by 2 billion kroner (US$368 million) over the next three years, the Copenhagen-based bank said yesterday after it reported its first quarterly loss since the height of the crisis more than two years ago.
UBS, Switzerland's biggest bank, and Deutsche Bank, Germany's biggest, last week said more jobs may be cut.
Deutsche Bank Chief Financial Officer Stefan Krause said on October 25 the lender will continue to adjust its "platform" if the challenging environment persists. The bank announced 500 job cuts earlier that month.
His counterpart at UBS, Tom Naratil, said the same day his firm's plans to reorganize its investment bank may lead to a lower headcount at the unit, though that won't necessarily entail job cuts.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
