IT Job cuts in the UK financial services sector are continuing
as companies get themselves ready for
worsening economic conditions.
HSBC will cut another 500 jobs and Swiss banking giant credit
Suisse has announced 650 UK jobs to go. Both announcements include
IT jobs cuts.
Banks have been reducing staff numbers. They see IT and back
office functions as surplus to requirements when business levels
fall.
HSBC cut 1,100 jobs in its investment banking division in
September including 500 front and back office jobs in London.
Credit Suisse, which made a loss in the third quarter of this
year of £704m, has announced 650 job cuts including IT support
functions.
"Due to market conditions and projected staffing levels required
to meet client needs, we are reducing headcount by approximately
650 in the UK," said Credit Suisse.
Citigroup plans to cut its global workforce by 52,000 jobs
across all businesses and geographies in the near future. Citigroup
CEO Vikram Pandit revealed last month that the bank would cut 20%
of its employees at the group.
A Citigroup spokeswoman said half of the job cuts will come from
the sale of business units. The company had earlier announced
18,000 job cuts when it sold its Global Services unit in India to
Tata Consultancy Services for £300m.
Pandit said earlier this year that it was feasible for the bank
to take 10%, 15% or 20% off its cost base, especially in IT and
operations.
The Royal Bank of Scotland (RBS) is expected to make thousands of
job cuts as it comes to terms with the economic slowdown.
According to various reports last month, up to 3,000 jobs will be
cut in the bank's global banking and markets divisions.
Barclays is also expected to cut IT jobs at its FirstPlus loans
business as it closes to new business. It will keep its IT
infrastructure to process existing customer loans, but is scaling
it back.