Wall Street to Slash 21K Jobs
Downsizing binge will rival that of financial crisis
By Kevin Spak, Newser User
Posted Apr 30, 2012 7:51 AM CDT
In an April 23, 2012 photo, trader Andrew Silverman, center, works on the floor of the New York Stock Exchange Monday, April 23, 2012.   (AP Photo/Richard Drew)

(Newser) – Wall Street's job creators aren't exactly living up to that billing. The market is soaring, and so are bank profits, but financial firms are preparing for a massive round of layoffs, analysts tell Fortune, estimating that the banks will cut nearly 21,000 jobs. That would be a bloodbath on par with the one that occurred during the financial crisis; 28,000 were eliminated in that purge, but that number included jobs lost in the collapse of Bear Stearns and Lehman Brothers, and at the time firms were failing, not prospering.

A new Boston Consulting Group report estimates that Wall Street will slash 12% of its workforce in the "short-term"—and "the estimate is possibly too low," says one industry insider. The banks have decided that they didn't cut enough jobs the first time around, and this time, a BCG analyst says, a lot more senior bankers could wind up in the crosshairs. One bright spot: Some smaller investment banks are actually hiring.

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Showing 3 of 6 comments
Tology
Apr 30, 2012 10:24 AM CDT
All to make the current president look bad before the election so their buddy Mitt can get in office and let them run rampant over the economy like their friend George W. did.
Antone123
Apr 30, 2012 10:00 AM CDT
The financial firms are making a Republican move to help stymie the struggling economy. Nice going ass wholes.
Hybrid_2.0
Apr 30, 2012 8:28 AM CDT
Sounds like fluff Banks are making money, but only cause of the spread of the fed rate and treas debt....Money from operations for most are still lagging.