Share This Article

Facebook LinkedIn
Twitter Reddit
Print Email
Pinterest Gmail
Yahoo
Money Morning
×
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
  • Retire
    • Income Investing Guide
    • Retirement Articles
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
Login My Member Benefits Archives Research Your Team About Us FAQ
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
    ×
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
    ×
  • Retire
    • Income Investing Guide
    • Retirement Articles
    ×
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
    ×
  • Subscribe
Enter stock ticker or keyword
×
5 Ways to Beat the Fed (and Crush Inflation)

Email this Article

Send with mail | ahoo instead.
Required Needs to be a valid email
Required Needs to be a valid email
Layoffs Hit an All-Time High in Financial Services Sector
http://mney.co/1BtJ8lS
Required Please enter the correct value.
Twitter

Layoffs Hit an All-Time High in Financial Services Sector

By Jason Simpkins, Managing Editor, Money Morning • October 30, 2007

View Comments

Start the conversation

By Jason Simpkins
Associate Editor

Merrill Lynch & Co. Inc. (MER) Chairman and CEO Stan O'Neal isn't the only worker in the U.S. financial-services sector with a job-security issue. Indeed, once his ouster becomes official, O'Neal will become just one more of the 130,000 casualties that have already made 2007 the worst year ever for layoffs in the U.S. banking-and-brokerage marketplace.

According to outplacement firm Challenger, Gray, and Christmas, those 130,000 job cuts are nearly three times the 50,000 cuts reported for all of 2006, and has already smashed the all-time record of 116,000 layoffs set in 2001.

"It's the worst year on record for job cuts in the financial services sector," John Pedderson, a Challenger, Gray, and Christmas spokesman told BusinessWeek.

According to Pedderson, about 80% of the job cuts were announced in the past two months, as finance firms suffered epic losses from subprime mortgage problems, a historic housing slump, and a debilitating credit crunch that turned into a global crisis this past summer.

In August, Accredited Home Lenders Holding announced it would cut 1,600 jobs.  That same month, Capital One Financial Corp. (COF) said it would close its Greenpoint mortgage unit, effectively dispatching 1,900 jobs. In September, Countrywide Financial Corp. (CFC) eliminated approximately 12,000 positions - more than 21% of its work force totals from the previous year. Also in September, IndyMac Bancorp (IMB) said it would terminate about 1,000 employees.

Mortgage lenders have been the hardest hit in terms of job losses, but financiers, traders, and investment bankers have seen their share of layoffs as well. Morgan Stanley (MS) and the Bear Stearns Companies Inc. (BSC) are cutting 300 and 310 jobs, respectively. Credit Suisse Group (CS) is purging 170 positions, HSBC Holdings PLC (HBC) 750, and UBS AG (UBS) is eliminating 1,500 jobs.

Overall payroll growth has slowed sharply in the past year. Private payrolls were growing about 140,000 a month at the end of 2006, but that growth slowed to just 90,000 a month over the past three months. Economists expect only modest job growth in October, with a median forecast of 80,000 new non-farm payroll jobs for the U.S. economy, MarketWatch reported.

Economists have forecast modest job growth in October, and the unemployment rate is expected to remain at 4.7%. Monthly figures for initial jobless claims, the unemployment rate, and non-farm payroll additions are set for release later this week.

News and Related Story Links:

  • Business Week:
    A Record Year for Layoffs in Finance.

  • MarketWatch:
    Fed likely to cut rates despite stellar growth.

  • Money Morning:
    "Shocker" Jobs Report Brings Rate Cut Closer
    .

  • Money Morning:
    Surprisingly Dismal Jobs Report Unleashes Its Fury on the Federal Reserve and Wall St.

  • Money Morning:
    Countrywide and SunTrust to Start Layoffs
    .

Join the conversation. Click here to jump to comments…

1 Comment
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
trackback
An Optimist Jobs Report Grants the Fed Some Breathing Room
13 years ago

[…] Money Morning: Layoffs Hit an All-Time High in Financial Services Sector […]

0
LIVE
Visit Money Morning Live


Latest News

January 19, 2023 • By Money Morning Stock Research Team

These Stocks Could Go To $0

January 9, 2023 • By Money Morning Stock Research Team

The Government Is Pouring $391 Billion Into These Stocks - Buy Now

December 27, 2022 • By Money Morning Staff Reports

6 IPOs in 2023 You Can’t Afford to Miss
Trending Stories
ABOUT MONEY MORNING

Money Morning gives you access to a team of market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.

QUICK LINKS
About Us COVID-19 Announcements How Money Morning Works FAQs Contact Us Search Article Archive Forgot Username/Password Archives Profit Academy Research Your Team Videos Text Messaging Terms of Use
FREE NEWSLETTERS
Total Wealth Research Power Profit Trades Profit Takeover This Is VWAP Penny Hawk Trading Today Midday Momentum Pump Up the Close
PREMIUM SERVICES
Money Map Press Home Money Map Report Fast Fortune Club Weekly Cash Clock Night Trader Microcurrency Trader Hyperdrive Portfolio Rocket Wealth Initiative Extreme Profit Hunters Profit Revolution Warlock's World Penny Nation Quantum Data Profits Live Trading Alliance Trade The Close Inside Money Trader Expiration Trader Vega Burst Trader Flashpoint Trader Darknet Hyper Momentum Trader

© 2023 Money Morning All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning.

Address: 1125 N Charles St. | Baltimore, MD, 21201 | USA | Phone: 888.384.8339 | Disclaimer | Sitemap | Privacy Policy | Whitelist Us | Do Not Sell My Info

wpDiscuz