• 21 hours Low Prices Plague Beleaguered Lithium Miners
  • 2 days Is This The Big Biotech Bust?
  • 2 days Funding Is The Biggest Hurdle For Clean Energy
  • 3 days Walmart Reaches Out To Chilean Government For Protection
  • 3 days The Most Exciting Gold Find Of The Decade
  • 3 days Mining Boom Sparks Deforestation Concerns
  • 4 days The Cannabis Culling Has Wall Street Disappointed
  • 4 days Vigilante Offers $100,000 Bounty To Hack Banks
  • 5 days The Dairy Industry Is Dying
  • 5 days The Most Impressive Electric Vehicle Of The Year
  • 6 days Gold Miners Are Having A Stellar Second Half
  • 7 days How 3D Printing Is Turning Each And Every Industry On Its Head
  • 7 days Is The $3.5 Trillion Healthcare Industry About To Get Much More Transparent?
  • 8 days Gamblers Are Betting Big On Trump’s Impeachment
  • 8 days Even Banks Can't Answer Aramco's Trillion Dollar Question
  • 9 days Will Bezos Buy The Seattle Seahawks?
  • 9 days 6 Tech Trends Transforming The Travel Industry
  • 10 days Ousted Uber CEO Cashes Out $500 Million In Stock
  • 10 days Trump Prepares For Another Key Tariff Decision
  • 10 days The Free Money Bubble Is About To Burst
Vigilante Offers $100,000 Bounty To Hack Banks

Vigilante Offers $100,000 Bounty To Hack Banks

A well-known vigilante hacker offered…

The Most Exciting Gold Find Of The Decade

The Most Exciting Gold Find Of The Decade

Gold miners are thriving as…

  1. Home
  2. News
  3. Breaking News

London Bankers Brace For Mass Layoffs

London

Yesterday, we reported about the increasingly dejected atmosphere at Deutsche Bank's Wall Street headquarters, where the looming fear that the bank is going to gut, shutter or sell most, if not all, of its US i-banking business has inspired those remaining employees to openly hunt for other jobs, while some managers and more junior employees are treating every day like its a Summer Friday.

But while things are certainly looking dire at 60 Wall Street, in the UK, where the looming uncertainty over Brexit is being compounded by a continent-wide slowdown, the impact on the financial services industry is being acutely felt, particularly among interns and junior analysts who are worried that they won't be able to find permanent jobs in the City as thousands of job cuts loom.

Deutsche Bank Planning to Cut Up to Half of Global Equity Jobs

According to Bloomberg, which apparently sent a team of reporters to hang out in some popular London pubs frequented by finance types. Though it's hardly a lasting comfort, some who have lost their jobs are finding camaraderie and a "safe space" with others in a similar position.

Recently, Nomura slashed dozens of brokerage jobs. Afterwards, those who lost out met in the pub to share a few round of goodbye drinks. The expectations for job losses this summer are so severe, that at least one of BBG's sources deemed the summer of 2019, the "summer of gloom".

Japan’s biggest brokerage let about 30 people go that day in April. Summer has arrived in London, but the smiles are likely to remain frozen in the financial community as HSBC Holdings Plc and Deutsche Bank AG join Nomura in implementing thousands of job reductions. In an atmosphere that may be the gloomiest since the financial crisis, some are jumping before they’re pushed.

"It’s one of the worst London job markets I have ever seen outside of a crisis," said Stephane Rambosson, founder of Vici Advisory, a London-based executive search firm. "I think there’s a real possibility that you could see more than 5,000 jobs lost by the end of the year.

"Cuts are concentrated at non-U.S. investment banks. European lenders, hobbled by weak domestic growth and negative interest rates, have been losing market share for years. Experienced bankers have seen contractions before, but there’s a feeling this time is different. It’s not just shaky markets, trade tensions and Brexit: Automation is making some banking skills obsolete. Related: What To Expect As Driving Season Kicks Off

One now-former banker even joked to BBG that some of his ex-colleagues have been forced to give up their dream of working in finance, and are instead pursuing employment at...a blockchain startup. Others are exploring opportunities in the cannabis industry.

In the City, the anxiety is palpable as some bankers quit rather than wait to be laid off.

"People are stressed out and desperately looking for new things, because they know it’s not going to be easy to find a job at another bank," said Rambosson, himself a former investment banker. “We see people quitting before the cuts come and taking the view that now’s the right time to get out.”

With all of this in mind, we can't blame traders for being cynical.

“Things will get worse,” said Amrit Shahani, research director at Coalition. "We expect a further 10% reduction in investment bank headcount in the U.K. over the next two years, partly due to Brexit job moves."

It's as good a time as any to learn that money can't buy happiness. And while some former bankers might struggle to get over it, for others, it's never too late to pivot to fintech.

By Zerohedge.com 

More Top Reads From Safehaven.com:

Back to homepage

Leave a comment

Leave a comment