Here Are the Finance Firms Cutting Jobs After Turmoil in Markets
The financial industry is deploying technology across its businesses to reduce costs.
(Bloomberg) -- Asset managers and banks are under pressure as volatility roils global markets and investors pile into passive, low-fee funds. The $3 trillion hedge fund market has been hit hard as performance sank and funds closed last year. One recruiter thinks more shakeout lies ahead.
The financial industry is deploying technology across its businesses to reduce costs. Many economists forecast a slowdown or even a recession. Financial firms with operations in the U.K. could slow hiring ahead of the country’s anticipated exit from the European Union.
Here’s a list of negative announcements from firms globally since Jan. 1:
- HSBC Holdings Plc will eliminate at least 50 jobs in its global banking and market unit as part of an annual performance review of its staff.
- Goldman Sachs Group Inc. is considering plans to reduce its core trading business within the fixed-income group. Senior managers in the commodities business have been asked to present a plan that includes job cuts.
- Legg Mason Inc. plans to cut staff as it increases investment in technology to manage assets and serve clients.
- BlackRock Inc. is cutting 3 percent of its global workforce, or about 500 employees, the largest reduction in its headcount since 2016.
- State Street Corp., the giant custody bank and asset manager, has started trimming its senior management ranks by 15 percent.
- AQR Capital Management, the quant manager, is also cutting jobs after a dismal performance in 2018.
- Banco Santander SA’s Polish unit announced plans to reduce its workforce by 11 percent, or as many as 1,400 jobs.
- Morgan Stanley dismissed some of its under-performers, with cuts occurring throughout fixed-income, equities and research divisions.
- Caixabank has contacted unions to start talks about staff cuts, Servimedia reports, citing people in the trade unions.
- Nomura is planning to make more European job cuts to recoup some of its losses on global financial markets, HRM Asia reported.
--With assistance from Brandon Kochkodin.
To contact the reporter on this story: Shelly Hagan in New York at shagan9@bloomberg.net
To contact the editors responsible for this story: Margaret Collins at mcollins45@bloomberg.net, Mary Romano, Josh Friedman
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