City investment bankers face axe
Thousands of investment banking jobs could go this summer as firms struggle to come to terms with the slump in demand for their services.
Banks such as Goldman Sachs, JP Morgan and Salomon Smith Barney are planning to cut up to 10% of headcount, while smaller banks are also poised to shed staff, says a report in The Business.
The global cuts will follow thousands of job cuts by banks already made over the past year, as funds from advising on mergers, acquisitions and capital raising dried up.
It has also been reported German banking group WestLB is planning to cut up to 25% of its London-based securities operation.
The bank, according to The Sunday Telegraph, is expected to reorganise its WestLB Panmure business operating out of London and Dusseldorf, axing at least a quarter of the 750 staff, as well as slashing bonuses by 50%.
It is said the group's board is to meet in Dusseldorf to discuss options for dramatic cutbacks, and it is speculated the bank could even be presented with a plan to close the whole of Panmure's London operation. WestLB would not provide a spokesperson to comment on the report.
In addition, a report in The Observer says Merrill Lynch, which has a large operation in London, is to axe another 2,000 jobs worldwide.
The bank, known in the City as "the thundering herd" has already reduced its worldwide staff numbers by 15,000 over the last year - representing 20% of its workforce.
A Merrill spokeswoman said: "We don't comment on market rumours."
Schroders, JP Morgan and Goldman Sachs were unavailable for comment.
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