Financial job losses could be worse than anticipated

Recent reports have suggested that the job losses in the financial sector are set to be even worse than originally anticipated, with the problems in the financial markets, which stemmed from the global credit crunch, having a profound impact in jobs within the financial industry as a whole, and resulting in tens of thousands of job losses.

The number of people that are now expected to lose their jobs within this industry is set to hit around 350,000, according to the latest report. Since the start of the financial crisis around half of this number have already lost their jobs. With banks losing trillions of dollars many banks are cutting back on staffing levels all around the world.

One industry official explained the severity of the situation, stating: ‘This is the financial equivalent of World War Two. It’s unprecedented. You’re seeing a seismic shift in the population of banking.’ He added: ‘Without the massive leverage that’s been in the system, the business of some of these big investment banks simply isn’t going to be there. You’ll go back to the investment banks of the 1960s and 70s.’

Many major banks and financial institutions have had to cut back on staffing levels, and many other job cuts are expected from firms such as JP Morgan Chase and Citigroup.