Layoffs

  • News

    Layoffs Watch ’12: Deutsche Bank

    The Germans thought about it and decided yes, layoffs sound like a great idea.

    Deutsche Bank said it will eliminate 1,900 jobs, including 1,500 at the investment bank, as part of an effort to save 3 billion euros ($3.68 billion). Deutsche Bank, based in Frankfurt, forecast “substantial costs” to achieve the savings without giving a figure in a statement to the stock exchange today.

    The job reductions are part of a strategy review Anshu Jain and Juergen Fitschen, Deutsche Bank’s new co-chief executive officers, are conducting as the lender grapples with declining revenue from the investment bank, which reported a 63 percent decline in second-quarter earnings today…“The time for vague promises of cultural change in our industry is long gone,” Jain said on a conference call with analysts and reporters. Deutsche Bank’s leaders are “totally determined to act quickly and decisively.”

    Deutsche Bank To Cut 1,900 Jobs In Bid To Save EU3 Billion [Bloomberg]

    / Jul 31, 2012 at 10:25 AM
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    Layoffs Watch ’12: Oppenheimer

    The firm is said to have released some of its young into the wild.

    Oppenheimer & Co. joined UBS today in laying off first year analysts two days before bonuses…

    / Jul 27, 2012 at 3:33 PM
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    Layoffs Watch ’12: UBS

    Unfortunately-timed cuts are said to have gone down this morning.

    From the front lines:

    “Over 30 IBD analysts cut at UBS in New York today. 2 days before bonus announcements…”

    / Jul 24, 2012 at 1:17 PM
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    Layoffs Watch ’12: Morgan Stanley

    The House of Gorman will be saying good-bye to a few thousand Little Jims before year-end.

    Chairman and Chief Executive James Gorman said the firm’s work force at year-end will fall 7% from 2011, reflecting previously announced layoffs as well as the firm’s efforts in applying “a high bar for replacing attrition.” The forecast implies a reduction of more than 4,000 jobs from the firm’s global headcount of 61,899 at Dec. 31. Last winter, Morgan Stanley announced 1,600 job cuts spread across its businesses, which was its largest such cutback since late 2008 and early 2009. The firm completed roughly 4% to 5% of those cuts in January and will complete an additional 2% to 3% by the end of 2012, a spokeswoman said.

    Morgan Stanley Expects 7& Cut In Its Workforce [WSJ]

    / Jul 19, 2012 at 12:59 PM
  • News

    Layoffs Watch ’12: Deutsche Bank

    The Germans are considering sending some bankers to live on a farm upstate, where there’s plenty of fresh air and room to run around.

    Europe’s biggest bank by assets, is considering cutting about 1,000 positions at its investment bank as revenue declines, according to a person with knowledge of the matter. The cuts will be mostly outside Germany, where the firm’s investment banking operations are focused, said the person, who asked not be identified as Deutsche Bank’s plan hasn’t been made public.

    [Bloomberg]

    / Jul 19, 2012 at 11:44 AM
  • News

    Layoffs Watch ’12: Bank Of America

    Project New BAC continues, only now that it’s worked out some of the initial kinks, management is going to fire people a lot faster that before.

    Chief Executive Officer Brian T. Moynihan, 52, is relying on expense cuts to improve profit as mortgage losses and regulation squeeze revenue. The earlier phase of his efficiency plan, called Project New BAC, targeted $5 billion in costs and 30,000 jobs…The lender had 275,460 employees at June 30, compared with 278,688 on March 31 and about 288,000 at the end of last year’s second quarter. The number of banking centers in the U.S. fell by 148 in the 12 months ended June 30 to 5,594…The new round of cost cuts will come at a faster rate than the first phase, Chief Financial Officer Bruce Thompson said today on the call. The $3 billion in savings will probably be realized at about $1 billion per year, he said. Moynihan told employees in January that he expected Project New BAC to eliminate a total of $6 billion to $8 billion a year in expenses, Bloomberg News reported. The bank said today it’s on track to realize $1 billion of the cost savings from the first phase by the end of this year.

    [Bloomberg]

    / Jul 18, 2012 at 4:07 PM
  • News

    Layoffs Watch ’12: Goldman Sachs

    The cuts aren’t expected to go too deep but every man, woman, and plant counts.

    David A. Viniar, Goldman’s chief financial officer, said the latest round of belt-tightening by the New York company might include job losses for “a couple of hundred people.” By year end, Goldman will reduce total expenses by $500 million on top of about $1.4 billion in cuts since last spring.

    Goldman To Tighten Belt Further [WSJ]
    Related: Goldman Sachs’ Philodendrons In The Line Of Fire

    / Jul 18, 2012 at 11:17 AM
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    Layoffs Watch ’12: Bank Of America

    Third-year Gulfstreams, pilots, and flight attendants have been encouraged to explore opportunities elsewhere.

    Bank of America Corp. has sold half of its corporate jet fleet and laid off some of its pilots, the Charlotte Business Journal has learned…BofA also has laid off more than half a dozen pilots and support staff at its corporate aircraft hangar in Charlotte, according to people familiar with the operations…Company officials decline to say whether the sales are part of a cost-cutting move or are a step toward fleet upgrades. Cost-cutting seems more likely.

    Bank of America trims corporate jet fleet and staff [BizJournals]

    / Jul 13, 2012 at 2:33 PM
  • News

    Layoffs Watch ’12: Morgan Stanley

    The House of Gorman is said to be in the process of letting some employees down easy.

    Morgan Stanley will this week complete a round of job cuts that will ultimately lead to the company shedding 100 sales and trading staff, underscoring what is expected to prove a dismal second quarter for Wall Street banks. The cuts are across Europe, the Middle East and Asia, according to people familiar with the New York-based bank’s plans. The bank has so far laid off about two-thirds of its original 100-person target, leaving some 33 people to go this week.

    Morgan Stanle Said To Shed Staff As Deals Fall [FT]

    / Jul 10, 2012 at 12:16 PM
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    Layoffs Watch ’12: Credit Suisse

    Cuts were said to have gone down at the House of Dougan this week.

    “Layoffs at Credit Suisse this week, mostly Wednesday and Thursday. ASO / VP level in IBD groups in New York (TMT, Energy, Industrials, Sponsors).”

    / Jun 29, 2012 at 3:38 PM
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    Layoffs Watch ’12: Goldman Sachs

    The summer cuts continue. Goldman Sachs Group Inc (GS.N) cut several dozen jobs from its […]

    / Jun 28, 2012 at 6:54 PM
  • News

    Layoffs Watch ’12: Credit Suisse

    While Brady Dougan is keeping his job, the same cannot be said for 1/3 of European investment bankers.

    Credit Suisse is to cut senior staff in its European investment banking department by up to a third, three sources familiar with the matter said, as tighter regulation and weak markets hit the sector. “In the European investment banking business, they are going to get rid of 60 directors and managing directors,” one source said on Monday. The investment banking department affected advises on mergers and acquisitions, stock market listings, financing and debt issues, as opposed to other areas of the broader investment bank that focus on securities trading. “It is about a third of the directors and 10-15 percent of the MDs,” the first source said, referring to what are typically two most senior job ranks in the banking world. The layoffs would happen in July, this person said. The formal redundancy process can last several months. A second source said the cuts could end up affecting 20-30 percent of senior investment banking staff in Europe.

    Credit Suisse To Make Heavy Job Cuts In Europe [Reuters]

    / Jun 25, 2012 at 3:23 PM
  • News

    Layoffs Watch ’12: Asia

    The bad news is that Goldman Sachs, Deutsche Bank, UBS, and others have been making cuts and are expected to continue to do so. The good news is that not everybody is upset about it.

    Speaking to bankers and other industry sources, Reuters was able to confirm at least 50 people were let go in the past three weeks, a cull that includes senior expatriates as well as junior bankers. The cuts mainly target the equities business, with more layoffs expected in coming weeks. CLSA , Deutsche Bank, Goldman Sachs, and UBS were among the banks and brokerages that cut jobs, the sources said…The Asia cuts also come at an unexpected time, when expatriate finance professionals are preparing to hunker down for the summer while their families head home for the holiday. “I’m disappointed, but in some ways I’m glad I was cut early in this round, because everyone is looking over their shoulder,” said Cassandra Lister, who was recently let go as a managing director at Societe Generale in Hong Kong. “They’re looking around and wondering ‘Am I next?’ It’s a horrible work environment.”

    Asia’s Investment Banks Launch Round Of Job Cuts [Reuters]

    / Jun 25, 2012 at 11:44 AM
  • News

    Layoffs/Hiring Watch ’12: RBS

    The bad news is that 600 of the Queen’s corgis are being let go. The good news, while it probably comes as little solace to those who will no longer receive birthday chickens, is that 300 or so new ones will be hired in their place.

    State-backed lender Royal Bank of Scotland is making more than 600 staff redundant as a result of legislation due to come into force at the end of the year, bringing total staff reductions at the bank since its 2008 bailout to around 36,000. RBS, 82 percent owned by the government, said the jobs would go as a result of new UK rules requiring retail financial products such as savings and investment vehicles to be sold by more highly qualified staff and charged a fee. “As a response to this we will be reducing the number of roles by 618 across the UK and creating 351 new roles,” an RBS spokesman said on Tuesday. “Having to cut jobs is the most difficult part of our work to rebuild RBS and repay taxpayers for their support. We continue to make efficiencies across our business to deliver greater value to our customers and shareholders,” the spokesman added.

    RBS Job Loss Hits 36,000 [Reuters]

    / Jun 19, 2012 at 2:20 PM
  • News

    Layoffs Watch ’12: UBS

    The firings continue, and the timing is impeccable.

    / Jun 7, 2012 at 6:34 PM
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    Layoffs Watch ’12: Goldman Sachs, Morgan Stanley, Citigroup, Barclays?

    Supposedly summer cuts are under consideration at all firms.

    Morgan Stanley is planning to eliminate about 100 trading jobs internationally in the next several weeks — with an unknown number of the cuts coming from New York. At Goldman, executives are likely to let the hatchet fall if the slowdown in trading doesn’t reverse itself, bank officials have said…Goldman is already cutting selectively among its middle-management ranks but could cut even deeper, sources explained. Goldman CFO David Viniar has told people that the firm may have to undergo a “right-sizing” again if the markets’ rocky road doesn’t improve, according to sources. And it’s not just Goldman and Morgan. Industry sources said that a number of other firms, including Citigroup and Barclays Capital, may also look to trim staff.

    [NYP]

    / Jun 5, 2012 at 2:12 PM
  • News

    Layoffs Watch ’12: Goldman Sachs

    A whole bunch of senior people were to pack up their things and leave last Thursday.

    Goldman Sachs laid off about 50 people last week, according to people briefed on the matter but not authorized to speak on the record. The cutbacks have rattled some people in the firm, in part because a number of the employees were managing directors and on the higher end of Goldman’s pay scale.

    We’re also told that “good performers, not dead weight” were among those cut, which must doubly sting.

    Goldman Sachs Cuts A Little Deeper [NYT]

    / Jun 5, 2012 at 8:49 AM
  • News

    Layoffs Watch ’12? Deutsche Bank?

    Mr. Jain, 49 years old, played a central role in building Deutsche Bank’s investment-banking business […]

    / May 31, 2012 at 6:05 PM
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    Layoffs Watch ’12: UBS

    Cuts are said to have gone down at the Swiss bank today.

    “Layoffs at UBS IBD, as if moral wasn’t low enough at 299 Park. M&A, FIG, TMT affected.”

    / May 23, 2012 at 6:49 PM
  • News

    Layoffs Watch ’12: JPMorgan

    Some people are keeping their London-based gigs (for now) and some people are not.

    JPMorgan Chase, the biggest U.S. lender by assets, will eliminate 20 investment-banking jobs in London as market conditions weaken, according to a person with knowledge of the cuts. The staff cuts aren’t related to the $2 billion loss at the New York-based company’s chief investment office in London, said the person, who asked for anonymity because the investment bank reductions haven’t been made public.

    [Bloomberg]

    / May 16, 2012 at 6:07 PM
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    Layoffs Watch ’12: Credit Suisse

    The Swiss bank is not done with its firings.

    Credit Suisse, the second- biggest Swiss bank, told New York state regulators it will eliminate 126 jobs in Manhattan over the coming months. The dismissals affect offices at 1 Madison Ave. and 11 Madison Ave. and will extend through Aug. 6, the bank wrote in a Department of Labor filing. The firm decided last year to scale down its investment bank and said it would cut 3,500 jobs.

    [Bloomberg]

    / May 15, 2012 at 7:18 PM
  • News

    Layoffs Watch ’12: Bank Of America

    The aforementioned layoffs are said to begin this week.

    “FYI: BofA cuts are expected to start Thursday, thought to be 20% across the board in IB. All levels affected but with 2nd and 3rd year VPs who are not going to make director, of which there is a glut, hit especially hard. If you’re a first year VP (without acct coverage responsibilities), you’re probably going into the superpods.”

    / May 8, 2012 at 11:56 AM
  • News

    Layoffs Watch ’12: Bank Of America

    In April 2010, Bank of America said ENOUGH. Enough with this losing of money business. We want to know what it’s like to have a quarter in which we actually make a little– wouldn’t that be something? As this was a very lofty goal for the firm, the higher-ups knew they had to get serious– really focus and hone in an on plan of action. First, they gave their new (money-making) mission a special codename: Project New BAC. Then, 44 executives “fanned out around the company to ask employees low- and high-level for ideas on how BofA [could]…reduce expenses.” As we now know, what they came up with re: the reduction of expenses was that 30,000 people should be fired and over the last year, exactly that has happened. And even though a whole bunch of senior people have quit, which has helped the bottom line a bit, it hasn’t been enough for meddlesome investors to put a sock in it re: “reining in expenses” and “profit outlook” in general. So, a couple things are going to happen: 1. A whole bunch of well-paid* bankers are going to be escorted out of the building and 2. In order to pick up the slack left, clusters of junior bankers are going to put in a van which will drop them off in whatever division needs them most at the time.

    The Charlotte, N.C., company is planning about 2,000 staff cuts in its investment banking, commercial banking and non-U.S. wealth-management units, said people familiar with the situation. Those operations were vastly expanded with Bank of America’s 2009 purchase of Merrill Lynch & Co. The reductions are significant because of whom they target: the high-earning employees whose efforts helped Merrill Lynch account for the bulk of Bank of America’s profit since the financial crisis. The cuts come on top of a plan announced last year that will see Bank of America eliminate 30,000 jobs over three years in its consumer banking divisions…The No. 2 U.S. bank by assets already is facing a wave of high-profile defections in its institutional businesses, such as investment banking, amid Wall Street’s annual post-bonus job-hopping season. The upheaval comes as investors are pressuring banks to rein in expenses without giving ground competitively. Despite a 46% rise this year, Bank of America shares have lost a third of their value in the past year, amid questions about the industry’s profit outlook.

    Cutbacks aren’t Bank of America’s only response to surging costs. The bank is loath to cut too deeply in businesses, such as the fixed-income trading operation, that are showing improvement and highly competitive. One structural shift being planned will pool junior investment-banking employees across different industry sectors so the younger bankers can be routed to whatever area is most in demand at that moment, said people familiar with the situation. Proponents say that move will help younger workers gain more experience, while others say it will detract from the bank’s service to clients.

    BofA To Cut From Elite Ranks [WSJ]

    *For BofA.

    / May 1, 2012 at 10:27 AM
  • News

    Layoffs Watch ’12: Credit Suisse

    Cuts are going down at the House of Dougan today.

    From the front lines:

    “Layoffs started at Credit Suisse this morning, across the investment bank. All levels affected, including a good amount of senior guys.”

    Apparently these reductions are part of a round cuts announced last year and were to be expected (though the “let’s have a chat” from HR this morning may still have been a slight surprise for those being asked to take a seat).

    / Apr 24, 2012 at 11:44 AM
  • News

    Layoffs Watch ’12: Investment Bankers, Everywhere

    Gird your loins.

    Having already slashed bonuses, banks including Citigroup, Goldman Sachs, J.P. Morgan Chase, Morgan Stanley, are preparing to cut dozens of jobs, including some held by senior bankers, according to people familiar with the matter. As they pursue this targeted round of trims as soon as next month, they and rivals are also revisiting profit expectations for their advisory businesses, people familiar with the matter said. Until recently, Wall Street’s ax had largely fallen on trading desks, which shed thousands of jobs as business dried up due to regulations and lackluster markets. But the cost-cutting focus is now expanding to deal makers and corporate advisers that have remained among Wall Street’s most high-profile professionals even as their contributions to banks’ bottom line has been dwarfed by traders. In addition to mergers-and-acquisitions advisory, investment banking includes raising capital through stock and debt.

    Wall Street Gets Lean [WSJ]

    / Apr 23, 2012 at 1:58 PM
  • News

    Layoffs Watch ’12: Bank Of America

    …needs a few more years to get through its “cost-cutting initiative.”

    Head count dropped by 3,000 from last quarter, the bank said today. Bank of America this quarter entered the second phase of “Project New BAC,” its companywide cost-cutting initiative, targeting a $5 billion reduction in spending by the bank by the end of 2014. Some of that will come from job cuts, the bank has said, as it plans to reduce the number of positions at the bank by 30,000 over the next three years…The current phase of New BAC will be focused on saving money in its commercial banking, global wealth and investment management, world-wide corporate banking, global markets and some support functions. The spokesman could not confirm that future reductions will be limited only in these businesses, as “some of the ideas that came from Phase 1 will take a number of years to implement.”

    [FINS]

    / Apr 19, 2012 at 2:50 PM
  • News

    Layoffs Watch ’12: Credit Suisse, Maybe

    The Swiss bank might cut 5,000 employees or it might not.

    / Apr 16, 2012 at 10:37 AM