Investment banking unit takes major hit as bank joins rush to cut expenses
Wall Street Journal 4 hours, 39 minutes ago
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Switzerland’s second largest bank, Credit Suisse, is slashing 5,300 jobs—11% of its global workforce—after posting a $2.48 billion loss in the first two months of this quarter, reports the Wall Street Journal . Most of the cuts will come from its moribund investment banking unit as Credit Suisse refocuses on its more profitable private banking and waits for market conditions to improve.
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So far, 170,000 positions have been cut worldwide
Bloomberg Nov 21, 08 10:23 AM CST
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Job cuts in the financial services sector could hit 350,000 worldwide by the middle of 2009, double the number so far, Bloomberg reports. "This is the financial equivalent of World War II," says the CEO of a major headhunting firm. If he's right, by summer, the industry will be 20% smaller than it was before Lehman Brothers and other investment banks started shedding jobs by the thousands.
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Shells out $7B while slashing jobs, taking bailout funds
Bloomberg Nov 18, 08 8:02 AM CST
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Bank of America will inject $7 billion into China Construction Bank Corp, Bloomberg reports, nearly doubling its stake in the bank even as it slashes jobs and accepts government bailout money. CCB is down 45% over the past six months, and BoA CEO Ken Lewis is getting a 32% premium on that devalued market price. The acquisition comes on the heels of the purchase of Merrill Lynch, which will result in thousands of job cuts.
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Bloomberg Nov 17, 08 8:19 AM CST
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Citigroup plans to slash more than 50,000 jobs, roughly 14% of its workforce, the company announced today, in an effort to shed expenses during the economic downturn. The cuts are in addition to the 23,000 heads that have already rolled this year, Bloomberg reports. Citi stock fell 19% last week, and is down 68% on the year. The nation's fourth-largest bank says the moves will forward its goal of cutting expenses by 20% in 2009.
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Software giant slashes 15-18% of workforce
Wall Street Journal Nov 14, 08 8:19 AM CST
(Newser)
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Sun Microsystems intends to lay off 5,000 to 6,000 employees, amounting to 15-18% of the computer maker’s workforce. The cuts should shave about $800 million off Sun’s costs, as the company struggles to compensate for swiftly declining sales. Sun lost $1.68 billion last quarter, as revenue fell 7%. The cuts are part of a wider restructuring intended to boost focus on its software business, the Wall Street Journal reports.
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Banking behemoth will shed 10,000 as it grasps for positive cash flow
Wall Street Journal Nov 14, 08 7:13 AM CST
(Newser)
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Citigroup, seeking profitability after suffering net losses of $20 billion over the past year, is laying off at least 10,000 employees worldwide and raising rates on some credit card holders, the Wall Street Journal reports. Officials were told to trim employee compensation budgets by 25%, allowing managers to minimize firings by cutting higher-paid bankers and traders from payrolls.
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German firm shutters DHL Express service centers as its competition gets the better
Associated Press Nov 10, 08 10:07 AM CST
(AP)
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Deutsche Post will close all of its DHL Express service centers, cut 9,500 jobs in the US, and eliminate US-only domestic shipping by land and air, the company said today, citing heavy losses and fierce competition with UPS and FedEx. The company said the new round of cuts are on top of another 5,400 layoffs it already announced.
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Automaker narrows losses, but results much worse than expected
Bloomberg Nov 7, 08 7:41 AM CST
(Newser)
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Ford Motor Company’s sales plunged 22% in the third quarter, the company said today, as the struggling economy eviscerated demand. The company lost $2.98 billion, or $1.31 a share, far worse than the 93 cents-per-share analysts expected, while burning through $7.7 billion in cash, Bloomberg reports. Another round of job cuts is on the way, the company says, including a 10% reduction of its salaried-personnel costs.
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ANALYSIS
Analysts see 'equal-opportunity recession'
BusinessWeek Oct 21, 08 3:22 PM CDT
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The financial sector is slashing workers, and Silicon Valley employees are dropping like prices on last year's iPod. What industry is next? All of them, Moira Herbst writes in BusinessWeek . Every company relies on credit and consumer purchasing power, making this an “equal-opportunity recession,” a staffing agent says. The damage could be 20 million jobs globally, Reuters adds.
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Magazine seeks to make best of bad news with 'Women of Wall Street' special
Reuters Oct 2, 08 11:16 AM CDT
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The bear market could create some new bunnies, Reuters reports, with Playboy seeking females from the financial world to pose for an upcoming "Women of Wall Street feature. The magazine—which ran "Women of Enron" and "Women of WorldCom" specials after those companies folded—says it is looking for current and former finance workers, the more senior the better.
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Wall Street quakes as ax falls again and again
New York Times Aug 29, 08 2:21 AM CDT
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Lehman Brothers is about to lay off another 1,500 employees—6% of its workforce—in its fourth round of cuts this year, an insider told the New York Times . The struggling financial services giant has already shed over 6,000 jobs since last summer. A total of some 101,000 Wall Street workers have been axed in 2008, and many industry analysts believe the bloodshed isn't over.
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Company aims to cut costs to boost liquidity, cope with lower sales
Wall Street Journal Jul 15, 08 9:42 AM CDT
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General Motors will cut salaried jobs, accelerate factory closings, and eliminate health care coverage for many salaried retirees in order to raise $15 billion to survive the industry's deep downturn, the Wall Street Journal reports. GM will also suspend dividends, sell some assets, lower capital spending, and cut production of pickup trucks and SUVs.
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$4 gas threatens workforce, car and
truck production
Bloomberg Jul 15, 08 2:37 AM CDT
(Newser)
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General Motors is expected to announce another big round of cost-cutting measures today, Bloomberg reports. Insiders say the ailing automaker, hit hard as consumers leave gas-guzzlers standing in car lots, is likely to slash thousands of jobs and reduce production of trucks and SUVs for the second time in two months.
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