Facing lower trading volumes, tough regulations, and lower profits, some of Wall Street’s biggest companies have begun “RIF layoffs.”
The upside is if the reason for breaking your contract as part of a “reduction in force” layoff, it’s cheaper for the bank.
And for those affected, saying you got “riffed” sounds better than saying you got laid off. Plus there’s the severance package and “garden leave” (aka free vacation).
So we’ve compiled how layoffs are affecting different Wall Street banks.
Number of people cut so far: Unknown, but layoffs happened this week
Unit affected: Employees speculate that a number of the cuts will be/were in equities
Location of layoffs: 230 in New York City; 1000 globally
Number of people expected to be laid off: Approximately 1000 by year's end
Reason for layoffs: A filing with the New York State Department of labour lists the reason behind the 230 New York layoffs as 'Economic.' The reasons Goldman plans to add 1,000 jobs to its Singapore offices in the near future, and to lay off about that number world wide to make room for them, are reportedly regulations and a need to cut costs.
Number of people cut so far: At least 50
Unit affected: Global equities and sales
Location of layoffs: Global
Number of people expected to be laid off: As many as 659
Reason for layoffs: A 33% fall in year-to-year profits in equities trading.
Number of people cut so far: Unknown, but people were cut in June
Unit affected: Someone inside the firm tells us that some big names were cut, he knew of ~5, and for every big trader let go, it means 10 people in the back-office left
Location of layoffs: New York, probably elsewhere
Number of people expected to be laid off: Unknown
Reason for layoffs: Larry McDonald of McDonald Advisory cites 3 reasons why
Number of people cut so far: 200
Unit affected: Citi Canada Call Centre
Location of layoffs: London
Number of people expected to be laid off: 200-300
Reason for layoffs: Layoffs seem to be a result of the bank's sale of its MasterCard business.
Number of people cut so far: 28,000 since 2009
Unit affected: Company-wide
Location of layoffs: Globally
Number of people expected to be laid off: 15,000 in the next quarter
Reason for layoffs: Lloyds is facing massive liquidity problems.
Source: The Telegraph
Number of people cut so far: Unknown
Unit affected: IT staff, maybe others
Location of layoffs: 200 IT staff in Switzerland and 300 IT staff globally
Number of people expected to be laid off: 500 in IT
Reason for layoffs: Cost-cutting