Well, actually Citi started sometime ago, with a massive 17,000 set to go as part of the bank’s squeeze on costs announced back in April. But Chuck Prince has been reviewing matters following the $3.3bn in losses and writedowns in the bank’s third quarter figures and senior heads are now rolling.
JPMorgan, quiet until now on losses, will follow its peers in trimming back its structured credit and leveraged finance departments. Reuters reports that about 100 jobs would go, or about 10 per cent of the headcount in the affected areas, but that no senior executives are expected to depart.
The bad news so far:
Bear Stearns – 240 jobs have gone from its US mortgage origination units, primarily in Virginia and Pennsylvania. Watch out for more tomorrow in the bank’s update to investors. Update – CNBC on Wednesday (3/10) reported that the bank was laying off a further 300 mortgage workers – confirmed as 310 more losses in its mortgage operations.
Citi – Tom Maheras, who ran all Citi’s capital markets operations, leaves as part of a management shake-up, as does Randy Barker, co-head of fixed income. Citi is part of the way through a cost-cutting programme that will see 17,000 leave the bank.
Credit Suisse – Total now 220. Investment banking will lose 170, mostly in New York [via AP]. That comes on top of the 150 jobs to go in the bank’s mortgage-backed securities unit, many of which were mortgage staff outside New York but with some from the main trading floor.
Deutsche Bank – no word on job cuts in the bank’s statement on Wednesday. But the IHT [via Banker’s Ball] reported that Josef Ackermann said in an interview on German TV last month that the bank was scaling back hiring plans, and would probably not proceed with plans to hire 6 per cent more people.
HSBC – restructuring of US mortgage business with the loss of 750 jobs
JPMorgan – 10 per cent, or around 100 jobs, to go in structured credit and leveraged finance.
Lehman – The biggest absolute number so far: more than 2,500 mortgage-related jobs. It initially closed its subprime mortgage unit, with a loss of 1,200 jobs, and said it would cut another 850 jobs as it restructures its mortgage business in the US, which would take the bulk of the losses, with smaller numbers shed in the UK and in Korea.
Merrill Lynch – job losses in the First Franklin mortgage origination business. In October, the London-based head of fixed-income trading, Osman Semerci, and Dale Lattanzio, head of structured credit products were ousted. CNBC reports rumours (04/10) of a 15 per cent cut within fixed income – but adds that the bank will wait and see what happens in the markets before making decisions on further cuts.
Morgan Stanley – 600 jobs to go in the global mortgage business, wiht 500 cut in the US, and about 90 lost in its UK subsidiary, Advantage.
UBS – Senior changes with the departure of Huw Jenkins, head of the investment bank, and Clive Standish, CFO. Jobs cuts of 1,500 in investment banking concentrated on fixed income units in London and New York. The Telegraph initially reported that “the bulk” of those will hit London – yikes! – but don’t panic, in a later story the paper said that about 350 were expected to come in the capital.