Wall Street to Slash 21K Jobs

Downsizing binge will rival that of financial crisis
By Kevin Spak,  Newser Staff
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. (Read more Wall Street stories.)

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