google-site-verification=RoadygaH2N3jsP-zBochCrn0ABtnedK76rnS7kMfyOU
Take a fresh look at your lifestyle.

The world bank, towards the largest staff cut since 2015

The world bank, towards the largest staff cut since 2015

0

Banks around the world have announced that they will undertake the largest wave of layoffs in the last four years in their attempt to cut costs to face a slowdown in the economy and adapt to new technologies.

This year more than 50 entities have announced their plans to cut a total of 77,780 jobs, the largest number of layoffs since 91,448 in 2015, according to union data. Banks in Europe, which also face the added burden of negative rates, account for almost 82% of the total.

The 2019 layoffs make the total number of the last six years exceed 425,000. In fact, the actual amount could be even higher, since many banks make layoffs without announcing it.

According to environmental sources, Morgan Stanley will lay off approximately 1,500 employees. The bank’s chief executive, James Gorman, has announced that the cuts amount to 2% of the bank’s workforce. This year’s figures also highlight the delicate situation of European entities while the region’s export-oriented economy faces the consequences of the trade war and negative interest rates.

Unlike the US, where the Administration’s programs and rising rates have helped banks overcome the financial crisis more quickly, European entities are still trying to recover lost ground. Given this situation, many banks resort to layoffs and the sale of less profitable divisions.

Germany’s first bank tops the list of layoffs. In fact, Deutsche Bank has announced that it will do without 18,000 employees by 2022, coinciding with the cuts in its investment banking division.

Germany is the most fragmented banking market in Europe and is among the most exposed to negative interest rates because its lenders have more deposits than their foreign competitors. Banks will surely continue to announce layoffs next year.

Swiss manager Julius Baer is considering cuts due to increased competition and falling margins. And the Spanish BBVA will introduce layoffs in its customer solutions business that could end up affecting the rest of the bank.

Layoffs

More than 50 entities have announced that they will undertake the largest wave of layoffs in the last four years trying to cut costs to face a slowdown in the economy and adapt to new technologies.

Leave A Reply

Your email address will not be published.