Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Global Banks Cut Jobs Fastest Since 2008 Amid Revenue Squeeze

A tram drives by an HSBC Holdings Plc advertisement in Hong Kong on July 30, 2011. Photographer: Jerome Favre/Bloomberg
A tram drives by an HSBC Holdings Plc advertisement in Hong Kong on July 30, 2011. Photographer: Jerome Favre/Bloomberg

Aug. 8 (Bloomberg) -- The biggest global banks are cutting jobs at the fastest rate since 2008 as a weak U.S. economy squeezes revenue, regulators push firms to hold more capital and companies restructure businesses to improve profitability.

The 50 largest banks, including HSBC Holdings Plc, Credit Suisse Group AG and Bank of America Corp., disclosed plans for almost 60,000 reductions since Jan. 1, according to company statements and data compiled by Bloomberg Industries. At that pace, they’ll cut more than 101,000 jobs this year -- the most since 192,000 positions were targeted in 2008 amid loan losses, a global credit crunch and unprecedented government bailouts.

HSBC’s aim to shed 30,000 workers, unveiled by the London-based firm on Aug. 1, was the single biggest job-cutting announcement since Bank of America said in December 2008 that it would eliminate as many as 35,000 positions, the data show.

Persistent low interest rates, stagnant loan growth and new rules for debit cards will crimp U.S. bank earnings this year. Global regulators, seeking to avoid a repeat of the financial crisis and blunt the impact of potential European sovereign debt defaults, are pushing banks to hold more capital. Firms including Goldman Sachs Group Inc. are seeking to pare costs in some countries while expanding in faster-growing economies, such as China, India and Brazil.

The following table lists global banks, including those outside the 50 largest, that have announced at least 500 job cuts so far this year, as well as their total employees as of Dec. 31, according to Bloomberg data. For companies that disclosed a range of reductions, the table shows the top limit. Many reductions are being made over months or years, and some firms have said they are simultaneously hiring in other areas.

Bank                  Job Cuts     Total Headcount    Cuts as
                      Announced    as of Dec. 31      % of
                      in 2011                         Dec. 31
                                                      Headcount

HSBC Holdings Plc,    30,000       295,061            10%
U.K.

Intesa Sanpaolo SpA,  3,000        102,000            2.9%
Italy

Lloyds Banking Group  16,800       104,000            16%
Plc, U.K.

Banca Monte dei       2,500        31,400             8%
Paschi di Siena SpA,
Italy

Credit Suisse Group   2,025        50,100             4%
AG, Switzerland

Allied Irish Banks    2,000        14,255             14%
Plc, Ireland

Barclays Plc, U.K.    3,000        147,500            2%

Bank of America       1,575        286,951            0.5%
Corp., U.S.

Banco Popolare SC,    1,120        20,000             5.6%
Italy

Unione di Banche      1,000        19,700             5.1%
Italiane ScpA, Italy

Goldman Sachs         1,000        35,700             2.8%
Group Inc., U.S.

Grupo Financiero      1,000        25,000*            4%
Banorte SAB, Mexico

Synovus Financial     850          6,109              13.9%
Corp., U.S.

State Street Corp.,   850          28,670             3%
U.S.

UniCredit SpA, Italy  700          160,000            0.4%

Erste Group Bank AG,  550          50,272             1.1%
Austria

American Express      550          61,000             0.9%
Co., U.S.

UBS AG, Switzerland   500          64,617             0.8%

* Headcount reflects Grupo Financiero Banorte’s acquisition of
Ixe Grupo Financiero SAB, which was completed in April.

To contact the reporter on this story: Lindsey Rupp in New York at lrupp1@bloomberg.net

To contact the editor responsible for this story: David Scheer at dscheer@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.