UBS’s decision to cut 5 per cent of its workforce brings to more than 40,000 the number of jobs cut by European banks in the past month and to 67,000 this year, as the region’s worsening sovereign debt crisis crimps trading revenue, according to the Sydney Morning Herald.
UBS, Switzerland’s biggest bank, said yesterday it will eliminate 3500 jobs, mainly from its investment bank. It follows HSBC, which announced 30,000 cuts on August 1, Barclays, which is cutting headcount by 3000, and Royal Bank of Scotland, which is eliminating 2000 posts. Credit Suisse announced 2000 reductions on July 28.
European banks are slashing jobs this year six times faster than their US peers, as concerns about the creditworthiness of Italy, Spain and France roil financial markets and reduce income from fixed-income trading, stock and bond underwriting as well as mergers and acquisitions. Financial firms are also cutting costs as regulators force banks to hold more and better quality capital to withstand future shocks.
“It’s a bloodbath, and I expect things to get worse before they get better,” said Jonathan Evans, chairman of executive-search firm Sammons Associates in London….
Find out more at http://www.smh.com.au/business/world-business/european-bank-job-bloodbath-hits-67000-20110824-1j93f.html
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