PRESENTING: The 200,000 Layoffs That Rocked Investment Bankers In 2011

Layoffs opener

2011 proved a difficult year for the financial services industry, when some 200,000 jobs were cut — greater than layoffs seen following the financial crisis in 2009.

In a report out this morning, Citibank’s Andrew Coombs compiled the cuts at the largest global firms, totaling 40% of the total announcements.

The layoffs paint a bleak picture of the capital market world, and foreshadow more cuts to come.

Bank of America

Heads cut: 30,000 across multiple phases

Cost Savings: $5 billion in first phase

Comments: Bank of America is cutting a total of 30,000 positions across its network over multiple phases and several years. First, the bank is focusing on better aligning its consumer segment which will be the main focus of phase one. In the second quarter of 2012, investment banking, commercial and wealth management will be targeted -- however, it is expected to be smaller than the layoffs in retail.

Source: Citi

Goldman Sachs

Heads cut: 1,000

Cost Savings: $1.2 billion

Comments: Goldman has announced cuts of about 3% of its work force for $1.2 billion in savings. However, recent reports have put that figure higher, at $1.45 billion, with the focus in securities and investment banking.

Source: Citi

Morgan Stanley

Heads cut: 1,600

Cost Savings: $1.4 billion

Comments: Morgan is aggressively cutting back in its investment banking unit -- it recently issued a WARN notice to the state of New York, announcing at least 580 layoffs in New York City. The bank has targets for a 1,600 reduction across IB.

Source: Citi

Deutsche Bank

Heads cut: 500

Cost Savings: Unclear

Comments: Deutsche Bank is cutting back corporate and investment banking unit after persistent slow volumes.

Source: Citi

Credit Suisse

Heads cut: 3,500

Cost Savings: $1.8 billion

Comments: Credit Suisse laid off about 7% of its workforce in 2011, but has increased its targets from an original 2,000.

Source: Citi


Heads cut: 3,500

Cost Savings: unclear

Comments: After a rough 2011, UBS is taking the axe to its investment bank. About half of targeted layoffs will hit the IB division, representing 10% of the unit.

Source: Citi

BNP Paribas

Heads cut: 1,000

Cost Savings: $700 million

Comments: BNP is planning its cuts around its structured finance and capital markets division. About a third of the cuts will take place in BNP's French operations, with the other two thirds impacting its global network.

Source: Citi

Societe Generale

Heads cut: 2,000

Cost Savings: $350 million (based on earlier estimates of 500 layoffs)

Comments: Last quarter, Societe Generale began ramping up its layoffs. Original proposals called for 500 cuts, but that figure has been upwardly revised to 2,000, or 13% of employees. DealBreaker reported that the company's entire energy division in Stamford had been given notice.

Source: Citi, Business Insider

Credit Agricole

Heads cut: 2,350

Cost Savings: unclear

Comments: Credit Agricole has announced cuts of 2,350, with 1,750 of those layoffs in the bank's investment bank. About 500 of the cuts will take place in Credit Agricole's home base in France, while 600 cuts will take place in the bank's consumer facing unit.

Source: Citi, Business Insider


Heads cut: 3,000

Cost Savings: £1.0 - £2.0 billion

Comments: Of the 3,000 job cuts announced by Barclays, about half will take place within the company's investment bank. Barclays has made a series of large acquisitions over the past few years, including Lehman Brothers and ABSA.

Source: Citi


Heads cut: 5,000

Cost Savings: unclear

Comments: RBS plans to cut up to 25% of its global banking and markets unit. Other reports have centered around fixed income and equities.

Source: Citi


Heads cut: 30,000

Cost Savings: $2.5 - $3 billion

Comments: Most of HSBC's cuts have been centered around the U.S. and Europe. The bank closed its retail operation in Russia and Poland, shuttered 66 branches in Mexico and sold off almost 200 branches in New York. HSBC plans to continue hiring in emerging territories.

Source: Citi, New York Times


Heads cut: 400 or more

Cost Savings: $1.2 billion

Comments: Nomura has been relatively reserved regarding its layoffs. The Japanese investment bank cut about 400 in Europe last year.

Source: Citi, Business Insider

The Top 10 Business Stories Of 2011 That Made No One Else's Top 10 List

Those were the major layoffs announced in 2011, but it wasn't all that happened.
Take a look at the top 10 business stories of 2011 that didn't make anyone else's list >

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