Major investment banks across the world have cut thousands of jobs since April amid worsening securities trading outlook, Financial Times reported on August 12.
According to FT, major financial institutions, mostly situated in Europe, have already cut up to 30,000 jobs in 2019 due to the falling interest rates, weakening securities trading volumes and the increasing level of trading automation. The vast majority of layoffs took place at the bank’s trading desks.
British financial heavyweight Barclays announced that it had cut over 3,500 jobs in an attempt to cut its costs. Meanwhile, its competitor HSBC has revealed that it would cut over 4,000 jobs due to tensions over trade and Brexit.
Paris-based Société Générale also announceded 1,600 layoffs, with the majority of them located in France. The decision is reportedly linked to poor results in the fourth quarter. German Deutsche Bank will face the most drastic restructuring, with its planned 18,000 job cuts.
In the United States, Citigroup announced it would cut “hundreds” of jobs, mainly in its fixed-income and stock-trading businesses divisions. According to the New York Department of Labor cited by FT, the overall number of jobs in the U.S. commodities and securities trading fell by 2% in June, which corresponds to a loss of approximately 2,800 positions.
Per FT, senior bank executives are currently facing pressure from their investors to reduce costs to protect profits. In the last few months, the Stoxx index that tracks European banks has fallen by 16%, while the KBW index, which tracks American financial institutions, has declined by 6%.