British financial services firms 'to cut 17,000 jobs by mid-2010'

29 March 2010

Companies involved in the financial services industry in the UK will cut around 17,000 jobs by the middle of the year, it has been forecast.

According to estimates from Ian McCafferty, chief economic adviser at the Confederation of British Industry (CBI), 10,000 jobs will be lost by the end of the first quarter of 2010, with a further 7,000 to follow in the next three months, reports Bloomberg.

Around 116,000 financial services jobs have gone in the UK in the wake of the recent market crisis.

Mr McCafferty's comments were made ahead of a report by the CBI and PricewaterhouseCoopers which states that profitability levels have risen at British banks for the second quarter in a row.

"Concerns over regulation are still dominant, with 90 per cent of banks surveyed considering this likely to limit business expansion over the coming twelve months," the report added.

It was noted that all the banking executives who were questioned for the report expect to spend more money on ensuring their firm is complying with regulations this year.

By Gary Cooper

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development