Investment banksMorgan Stanley andGoldman Sachscould soon
announce many more job cuts, which will include back office and
technology jobs.
According to the
Wall Street Journal, the banks are considering the cuts, which
could hit Morgan Stanley's UK headquarters in Canary Wharf. Both
banks were unavailable for comment.
Morgan Stanley employs almost 50,000 people and Goldman Sachs
had about 30,000 staff last year.
According to analysts as many as
300,000 people could have lost their jobs in the global financial
services sector globally by the end of 2009, with as many as
25% of that total drawn from IT professionals.
This is the result of mergers being completed and companies
preparingfor a slowdown in business.
Ralph Silva, analyst at
Towergroup, said thebanks weredoing 25% less
business and as a result the cuts wereunsurprising.
"I would not be surprised by more lay-offs and I think they will
be in all areas of the business in equal numbers. Therefore
operations (including IT) and customer-facing staff will be hit in
equal numbers," added Silva.