Getting the Sack, Again: Looming Layoffs at These 10 Banks

 

The financial crisis of 2008 may be well behind us – as most economies rise up and past the slump. But in the past four months, banks have started another round of redundancies as they reevaluate employees to trim underperformers, shift advisory services online – and move away from non-core businesses.

Mergers have also caused people to lose their jobs – although in some cases, layoffs are compensated by recruitment in other areas of operation.

Are these layoffs necessary? Share your opinion with EconomyWatch below.

 

 

The financial crisis of 2008 may be well behind us – as most economies rise up and past the slump. But in the past four months, banks have started another round of redundancies as they reevaluate employees to trim underperformers, shift advisory services online – and move away from non-core businesses.

Mergers have also caused people to lose their jobs – although in some cases, layoffs are compensated by recruitment in other areas of operation.

Are these layoffs necessary? Share your opinion with EconomyWatch below.

 

Layoffs, anyone? Here are the top 10 banks where job cuts and layoffs continue according to Business Insider:

 

1. First Niagara Financial Group (FNFG)

The company laid off 230 employees in Connecticut following their acquisition of NewAlliance Banc shares (NAL) for US$1.5 billion in August 2010.

Earlier this month, employees of the bank that may be affected by further layoffs were notifed. According to reports, the bank expects to layoff 126 people in New Haven and 93 people in Manchester.

 

2. M&T Bank Corp (MTB)

721 employees will lose their jobs in Delaware – including lawyers, human resources and information technology. The layoffs are a result of the bank’s acquisition of Wilmington Trust for $351 million in November 2010.

Layoffs were announced in November but will only come full circle later this year.

The cost of severance payments: US$23 million according to the WSJ.

 

3. Wells Fargo (WFC)

The closure of the Home Affordable Refinance Program (HARP) lead the bank to layoff employees across the US. Over 200 employees in Iowa were laid off in February and this month, 145 employees in its California mortgage division and 142 employees from its Kansas City auto loan collection office were sent packing.

The company plans to close all its 638 financial offices and layoff a further 2,000 emplyees.

The cost of severance charges in its fourth quarter earnings: US$4.4 million.

 

4. NC Financial Services Group (PNC)

58 information technology jobs in Cleveland and 30 jobs in mortgage-servicing, Ohio will be eliminated this month – and affected employees have been notified.

More layoffs loom in an unidentified branch near Dayton.

PNC’s statement: “PNC like most other business is constantly evaluating the business needs to make sure our customers are taken care of and from time to time that results in staffing adjustments and changes in our branch network,” said PNC spokesperson Amy Vargo. “It is just part of the ebb and flow of our business.”

 

5. Bank of America (BAC)

The bank announced it will close several of its 5,856 retail branches – and eliminate more jobs this year to boost revenue by offering investment advice through using video conferencing, according to a report by Bloomberg. .

1,500 positions will be made redundant in non-core businesses such as a tax center near Kingston, New York

The bank also laid off employees in its Global Technology & Operations division in December and Capital Markets divisions.

 

6. Barclays (BCS)

Layoffs  is the theme for Barclay’s goal to trim over $1 billion in expenses by 2013. In the firing line: underperformaing staff according to CEO Robert Diamond.

600 employees were laid off in January and the bank also announced 1,000 job cuts to take effect on February 18 – in its consumer unit as financial advice shifts online.

 

7. JPMorgan Chase (JPM) 

This year alone the number of people conducting trades shrunk from 3,000 to 1,700, according to Here is City – as the bank cuts its trading platforms down from ten to five, and plans to further cut those platforms down to two by 2014.

A five person team at Highbridge Capital Management, which was managing $27 billion in assets will also get the sack despite flat returns in 2010.

 

8. Morgan Stanley (MS)

Layoofs in its hedge fund FrontPoint Partners put 25 to 30 jobs at risk.

The bank has also been trimming down in its private bank in Charlotte, North Carolina.

 

9. Bank of Montreal (BMO)

143 positions from internal support to top management employees came under fire following its US$4.1 billion merger with Marshall & Iisley Corporation.

In the wake of its $4.1 billion merger with the Marshall & Ilsley Corporation is eliminating 143 positions. Though the bank denies a link between job cuts and its recent acquisition.

 

10. Lloyds (LYG)

13 employees that worked in its equity markets unit of its investment banking arm will be laid off as part of an ongoing effort to exit non-core businesses.

The bank also announced 2000 job cuts in the UK insurance operations and a further 70 positions could be at risk in Newport, according to Manchester Wired. The company has laid off 26,000 employees since the financial crisis, and it was partly nationalized by the British government in 2009, according to Reuters.

 

Are these layoffs necessary? Share your opinion with EconomyWatch below.

 

Liz Zuliani

EconomyWatch.com