This fall, layoffs will hit Wall Street like an automatic weapon. With recession outlooks seeming more plausible than ever and banks struggling in the new regulatory environment, banks need to get stronger and raise capital.
Nearly every firm is planning to lay off thousands. Check out who has it the worst.
- UBS
UBS
Number of people cut so far: Unknown
Unit affected: IT staff, investment banking, asset management and wealth management
Location of layoffs: Switzerland and globally
Number of people expected to be laid off: 500 in IT; 8,500 globally
Reason for layoffs: The bank cites cost-cutting as the main reason for the layoffs. UBS (NYSE:UBS) said with the most recent spate of job cuts it's seeking to save $2 billion Swiss francs (NYSE:FXF).
- Bank of America
Bank of America
Number of people cut so far: Unknown
Unit affected: Investment banking, trading and possibly other units.
Location of layoffs: Nationwide
Number of people expected to be laid off: Over 10,000 (3,500 this quarter)
Reason for layoffs: It's part of a major re-organization known as "Project New BAC." (NYSE:BAC)
- HSBC
HSBC
Number of people cut so far: HSBC (NYSE:HBC) cut 700 jobs in its UK (NYSE:EWU) retail banking arm in June.
Unit affected: Retail operations, credit card arm and possibly other units.
Location of layoffs: Europe and U.S.
Number of people expected to be laid off: 30,000
Reason for layoffs: The bank is also taking cost-cutting measures. While it is firing up to 30,000, the bank plans to hire 3,000 to 4,000 in emerging markets.
- RBS
RBS
Number of people cut so far:Unknown
Unit affected: Investment banking
Location of layoffs: U.K. and possibly elsewhere
Number of people expected to be laid off: 2,000
Reason for layoffs: Layoffs come as the bank completes its integration of ABN Amro, the Dutch acquisition that nearly pushed RBS (NYSE:RBS) to the edge of collapse.
- Goldman Sachs
Goldman Sachs
Number of people cut so far: Unknown, but layoffs happened in early July.
Unit affected: Employees speculate that a number of the cuts will be/were in equities
Location of layoffs: 230 in New York City; 1,000 globally
Number of people expected to be laid off: Approximately 1,000 by year's end
Reason for layoffs: A filing with the New York State Department of Labor lists the reason behind the 230 New York layoffs as "Economic." The reasons Goldman (NYSE:GS) plans to add 1,000 jobs to its Singapore offices in the near future, and to lay off about that number world wide to make room for them, are reportedly regulations and a need to cut costs.
- Barclays
Barclays
Number of people cut so far: 1,400
Units affected: BarCap and U.K. consumer unit
Location of layoffs: U.K. and globally
Number of people expected to be laid off: 3,000
Reason for layoffs: Barclay's (NYSE:BCS) cost-cutting efforts as second quarter investment banking profit fell by more than a quarter.
- Deutsche Bank
Deutsche Bank
Number of people cut so far: Unknown, but people were cut in June.
Unit affected: A source at the bank told us some big names were cut, he knew of about 5, and for every big trader let go, it means 10 people in the back-office left.
Location of layoffs: New York, probably elsewhere
Number of people expected to be laid off: Unknown
Reason for layoffs: Larry McDonald of McDonald Advisory cites 3 reasons why. What's more is a source from Deutsche (NYSE:DB) tells us the bank hired 80% of its summer analyst intern class.
- Credit Suisse
Credit Suisse
Number of people cut so far: Unknown, but there were layoffs back in June.
Unit affected: Equity, debt, finance, operations and investment banking
Location of layoffs: Globally
Number of people expected to be laid off: 1,500 - 2,000
Reason for layoffs: The cuts are part of a more general cost-cutting plan for Credit Suisse (NYSE:CS).
- Citigroup
Citigroup
Number of people cut so far: 200
Unit affected: Citi (NYSE:C) Canada Call Centre (NYSE:EWC)
Location of layoffs: London
Number of people expected to be laid off: 200-300
Reason for layoffs: Layoffs seem to be a result of the bank's sale of its MasterCard (NYSE:MA) business.
- Morgan Stanley
Morgan Stanley
Number of people cut so far: Over 300
Unit affected: Brokers, wealth management, fixed income, and equities. A source told us the bank will also fire 20% of managing directors in research by the end of the year.
Location of layoffs: "A lot" in New York and elsewhere.
Number of people expected to be laid off: "Morgan Stanley (NYSE:MS) is running layoff scenarios into the thousands." - Gasparino
Reason for layoffs: “As we continue to take actions to improve broker efficiency we may reduce our broker headcount below previously announced targets,” Ruth Porat, Morgan Stanley's CFO said back in June.
- Lloyds
Lloyds
Number of people cut so far: 28,000 since 2009
Unit affected: Company-wide
Location of layoffs: Globally
Number of people expected to be laid off: 15,000 in the next quarter
Reason for layoffs: Lloyds (NYSE:LYG) is facing massive liquidity problems. The cuts are also part of a reorganization plan for allowing the British government to sell its stake in the bank.
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