Factbox: Global banks cut jobs as cost pressures mount

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Factbox: Global banks cut jobs as cost pressures mount

Reuters

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Not a ‘doomsday scenario’ -Analyst on bank layoffs

LONDON, Jan 11 (Reuters) – Global banks are in the process of cutting at least 5,000 jobs as profits at lucrative investment banking units come under pressure from volatility in capital markets and fast-rising interest rates, according to a Reuters tally of reported cuts.

Rapidly deteriorating economic conditions have also prompted lenders to build rainy-day funds to brace for potential defaults.

The following major banks have announced or been reported to be making job cuts:

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BARCLAYS

Barclays (BARC.L) cut its workforce in corporate and investment banking by under 3%, a source told Reuters on Nov. 8, weeks after reporting a 45% slump in merger advisory fees.

The British investment bank has performed well in recent quarters, especially in fixed income trading, but a blunder in the United States that saw it sell more securities than permitted has cost it hundreds of millions of dollars in penalties.

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CITIGROUP

Citi (C.N) eliminated dozens of jobs across its investment banking division, as a dealmaking slump continues to weigh on Wall Street’s biggest banks, Bloomberg News reported on Nov. 8.

The U.S. lender has, like its peers, boosted its lending income as interest rates rise, but the aggressive action by the Federal Reserve and other central banks has sparked fears of a downturn that could hit banks’ loan books in time.

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