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...Fire people that is.
The long grinding (and long overdue) contraction of the global FIRE sector continues. And so do the bonuses...
Even after the industry posted its best results since 2006, the six largest U.S. banks announced plans in the first three months of this year to eliminate about 21,000 positions, or 1.8 percent of their combined workforce, according to data compiled by Bloomberg. That’s the most since 2011’s third quarter. JPMorgan Chase & Co. (JPM), whose 259,000 people produced three straight years of record profit, topped the list with 17,000 reductions scheduled by the end of 2014.
Banks are under pressure to keep profit climbing amid weak revenue growth, and employees are among the biggest expenses after interest costs. The most vulnerable people work in units where demand is waning such as mortgage foreclosures. Their departures would come on top of 320,000 jobs culled from U.S. financial companies in the past five years, the data show...
...The bulk of the firings will come in the first half of 2013, according to Jason Kennedy, chief executive officer of London-based recruiting firm Kennedy Group.
“Last year, they waited to make the cuts and it was a continuous bleed,” Kennedy said. This year, “the banks aren’t waiting.”
The housing market rebound means fewer people are needed in mortgage servicing to handle soured loans or review foreclosure documents. JPMorgan, led by CEO Jamie Dimon, 57, said last month it will cut 13,000 to 15,000 jobs in the mortgage unit through 2014...
The long grinding (and long overdue) contraction of the global FIRE sector continues. And so do the bonuses...
Apr 9, 2013 4:00 AM MT
[Bloomberg] Rising stock prices, rebounding profits, restored dividends and a growing economy are signaling to U.S. banks it’s time for more job cuts.
[Bloomberg] Rising stock prices, rebounding profits, restored dividends and a growing economy are signaling to U.S. banks it’s time for more job cuts.
Even after the industry posted its best results since 2006, the six largest U.S. banks announced plans in the first three months of this year to eliminate about 21,000 positions, or 1.8 percent of their combined workforce, according to data compiled by Bloomberg. That’s the most since 2011’s third quarter. JPMorgan Chase & Co. (JPM), whose 259,000 people produced three straight years of record profit, topped the list with 17,000 reductions scheduled by the end of 2014.
Banks are under pressure to keep profit climbing amid weak revenue growth, and employees are among the biggest expenses after interest costs. The most vulnerable people work in units where demand is waning such as mortgage foreclosures. Their departures would come on top of 320,000 jobs culled from U.S. financial companies in the past five years, the data show...
...The bulk of the firings will come in the first half of 2013, according to Jason Kennedy, chief executive officer of London-based recruiting firm Kennedy Group.
“Last year, they waited to make the cuts and it was a continuous bleed,” Kennedy said. This year, “the banks aren’t waiting.”
The housing market rebound means fewer people are needed in mortgage servicing to handle soured loans or review foreclosure documents. JPMorgan, led by CEO Jamie Dimon, 57, said last month it will cut 13,000 to 15,000 jobs in the mortgage unit through 2014...
...Bank of America Corp. (BAC), ranked second by assets with a workforce of 267,000, cut about 5 percent in its appraisal unit and shut offices in Newark, New Jersey, and a suburb of Buffalo, New York, as part of a campaign by CEO Brian T. Moynihan, 53, to eliminate 30,000 positions. The lender also announced more than 370 cuts in California, a portion of which were related to mortgages, according to T.J. Crawford, a spokesman for the Charlotte, North Carolina-based bank...
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