Experts fear that Wall Street firms will cut thousands of additional jobs in the coming months as liquidity concerns spread. Jo Bennett, an executive search firm specialist in New York, estimated that job cuts by Wall Street firms “could be more than 100,000 in a few years.” Similarly, USA Today reported that New York City, alone, could lose over 20,000 jobs in the financial sector during the next 2 years.
Already, Wall Street firms have aggressively cut jobs in an effort to get costs under control. Bloomberg.com reports that more than 34,000 jobs have been cut in the last nine months as a result of the subprime crisis and ensuing credit crunch. The job cuts have impacted a wide array of firms with at least eleven firms having eliminated over 1,500 jobs. The largest job cuts have taken place at Citigroup, Lehman Brothers, Bank of America, Morgan Stanley, and Merrill Lynch.
In addition, ongoing consolidations within the securities industry pose the likelihood of additional job cuts. For example, J.P. Morgan’s recent agreement to acquire Bear Stearns is likely to result in the loss of thousands of jobs. As the subprime crisis and related credit crunch continue, more consolidations are probable with the attendent loss of jobs.
Page Perry is an Atlanta-based law firm with over 125 years collective experience representing investors in securities-related litigation and arbitration. While past results are not indicative of future success, Page Perry’s attorneys have recovered over $1,000,000 for clients on more than 30 occasions. Page Perry’s attorneys are actively involved in representing individual and institutional investors regarding their subprime problems. For further information, please contact us.