[ by Howard Haykin ]

Banks Unlikely to Ever Reinstate Current Job Cuts.

Major banks have reduced their employee ranks by some 160,000 jobs since early last year, and more layoffs are expected as financial institutions continue to restructure.  Once these jobs have been terminated, it's probable that they are gone for good.  The shrinking financial industry has settled into a personnel flow where redundancies outnumber new hires 2-to-1.

A Reuters analysis of job cuts announced by 29 major banks showed the layoffs were much bigger in Europe than in Asia or in the U.S. Britain has taken a particularly hard blow the financial market sector accounts for about 10% of the U.K. economy.

160,000 Jobs and Up.   For the most part, the layoff numbers reflect only those announced by large multi-national banks.  The are sure to rise considerably, as jobs cuts at the small to mid-sized levels for banks, brokers, and advisers begin to be counted.  Also, all firms - large and small - have stated in no uncertain terms that further cuts will be made in coming years.  Finally, recent reports of near-term plans by Commerzbank to cut 6,000 jobs are not included in the above totals.

Well-Paid Investment Bankers Not Faring Well.   Investment bankers will continue to bear a significant portion of the cuts.  First, because of their high salaries, greater savings can be achieved by terminating bankers.  Also, with banking services down and future prospects for an upturn not very likely, investment bank departments have been a major cost center and firms no longer can hold on in the hope things turn around. 

Of course, the job cuts eat into tax revenues that will hurt governments throughout the world, and reduce the chances that banks and brokers will be able to capitalize on any economic upturns in the near or foreseeable future.

For further details, go to:   [Reuters, 11/16/12].