CBI: Financial companies to slash 17.000 jobs in first six months

03-30-2010 10:24

British financial-services firms will slash approximately 17.000 jobs in the first half of 2010, despite the fact that confidence gains momentum, according to the Confederation of British Industry (CBI). McCafferty, the CBI chief economic adviser, stated: “Approximately 10.000 jobs were cut in the first three months of this year and another 7.000 will be slashed in the second quarter.”

Financial firms

Andrew Gray, UK banking advisory leader at PricewaterhouseCoopers, commented: “It is expected that staffing levels will be reduced further in the second quarter.” The CBI chief economic adviser stated that the positive sentiment among financial firms has improved slightly since December due to “the recovery in profitability.”

Financial-services jobs

The UK economy found its path out of the worst downturn as it expanded by 0.3% in the last quarter of 2009. Approximately 116.000 financial-services jobs have been cut since the financial slump started, while the whole industry consists of 1 million employees, according to the UK’s top business lobbying organization.
Financial-services firms became more profitable in the initial three months of 2010 and this will improve further in the second quarter, the Confederation of British Industry noted.

British competitiveness

“Confidence among ‘banks’ continues to improve as forecasts indicate that business volumes will demonstrate the strongest increase in 36 months,” the PwC UK banking advisory leader stated.
However, worries regarding the new regulation are at the highest level ever, as approximately 74% of the firms expect that the new regulation will “have a negative impact on their growth potential,” in the next year. Approximately 85% of the surveyed firms stated that they were worried about the decreasing British competitiveness as a financial center.

Confederation of British Industry

The Confederation of British Industry reviewed 80 firms, such as insurers, banks, building societies and fund managers in the period between February 17 and March 3. The premier lobbying organization for UK business on all national and international issues represents 240.000 companies that provide work for a third of the private sector.