Wednesday, May 2, 2012

Larger layoffs loom on Wall Street





The latest wave of financial industry cuts could eliminate 21,000 jobs, rivaling the financial crisis, Fortune reports.   Perhaps the only thing more broken than Wall Street's business model is its staffing strategy.

After adding thousands bankers in the past two years, financial firms again appear to be on the verge of cutting that many positions and then some. Consultants and Wall Street recruiters say banks could eliminate nearly 21,000 jobs from their securities divisions in New York alone. Worldwide cuts could be even larger. Recruiters say big banks are in the process of finalizing their downsizing plans, and that layoffs could start soon.

The latest round of job cuts could rival those that happened during the financial crisis. Back then, which was less than four years ago, Wall Street eliminated 28,000 positions.  Nonetheless, consultants say the big Wall Street firms are coming to the conclusion that they have more workers than they need. Last week, The Boston Consulting Group released a report that predicted banks would eliminate 12% of their workforce in the "short-term." Recruiters say those numbers sound similar to what they are hearing from the large firms....

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