Hundreds more investment bank IT job cuts expected


Hundreds more investment bank IT job cuts expected

Karl Flinders

Investment banks Morgan Stanley and Goldman Sachs could 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.

Email Alerts

Register now to receive IT-related news, guides and more, delivered to your inbox.
By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy

COMMENTS powered by Disqus  //  Commenting policy