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Global banks considering to chop off over 1 Lakh jobs
By siliconindia
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Wednesday, 10 August 2011, 00:37 IST
Bangalore: Due to weak U.S. economy, the biggest global banks are poising jobs at the fastest rate since 2008, as regulators push firms to grasp more capital and companies to restructure business to improve profitability.
The 50 largest banks like HSBC Holdings, Credit Suisse and Bank of America revealed plans for almost 60,000 reductions since January 1, according to company statements and data compiled by Bloomberg. Since 192,000 positions were targeted in 2008 amid loan losses, a global credit crunch and unprecedented government bailouts, the companies will cut more than 101,000 jobs this year.
On August 1, a London based firm confirmed that HSBC aims to eliminate 30,000 workers. It was by far the single biggest job cut announcement since Bank of America announced to eliminate around 35,000 positions in December 2008.
Continuous low interest rates, dormant loan growth and new rules for debit cards will crumple U.S. bank earnings. The banks are forced to hold more capital to avoid the repetition of the financial crisis and blunt impact of potential European sovereign debt defaults.
Firms including Goldman Sachs are seeking to trim costs in some countries while expanding in faster-growing economies, such as China, India and Brazil.
