3 major banks 'set to cut 5,350 jobs'

20 July 2012

Three major global financiers are planning to make more than 5,000 investment bankers redundant in the near future, a report has suggested.

According to the Financial Times, Morgan Stanley, Deutsche Bank and Citigroup are looking to cut thousands more jobs as they continue in the process of restructuring their businesses.

Morgan Stanley is planning to implement 4,000 redundancies in this area of its operations, with Deutsche Bank and Citigroup preparing to reduce their investment workforce by 1,000 and 350 respectively.

Many lenders are focusing on downsizing this area of their business at present in order to make sure they comply with incoming regulations while also reducing their operating costs.

An insider from Deutsche Bank said its redundancies were being made for "tactical, not strategic" reasons.

Meanwhile, Kinner Lahkani, an analyst at Citi, told the news source: "The eurozone crisis and the global macroeconomic environment have made for a cyclically weaker revenue environment ... the whole industry also faces structural change."

By Claire Archer

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