Financial Firms May Make Deeper Cuts, Eliminate 175,000 Jobs
Started by stevejhx
about 18 years ago
Posts: 12656
Member since: Feb 2008
Discussion about
http://www.bloomberg.com/apps/news?pid=20601087&sid=a9D9UjMULF4o&refer=home `Chopping Heads' About 17 percent of banking and securities jobs in New York were wiped out from 2000 to 2003, the Bureau of Labor Statistics said. The current round of cuts may claim 35 percent to 40 percent of the industry, said Gary Goldstein, chairman of New York-based financial recruitment firm Whitney Group.... [more]
http://www.bloomberg.com/apps/news?pid=20601087&sid=a9D9UjMULF4o&refer=home
`Chopping Heads'
About 17 percent of banking and securities jobs in New York were wiped out from 2000 to 2003, the Bureau of Labor Statistics said. The current round of cuts may claim 35 percent to 40 percent of the industry, said Gary Goldstein, chairman of New York-based financial recruitment firm Whitney Group.
``They just keep chopping heads,'' Goldstein said. ``They'll wake up one day and realize that they've cut too deep and now these businesses have come back and they don't have anybody to do them.''
New York-based Bear Stearns Cos. is cutting more than 9,000 jobs, or 66 percent of its workforce, as it was acquired by JPMorgan Chase & Co. Zurich-based UBS AG has announced 7,000 job cuts, and Lehman Brothers Holdings Inc. has trimmed 6,300 employees.
The Independent Budget Office in Manhattan said in a report issued last month that it expects 33,300 finance jobs in the city, or 7.1 percent of the total, to be cut from the peak in 2007. The industry lost 52,500 jobs in New York during the 2000- to-2003 market drop.
Wall Street's Tendency
``Wall Street has a tendency to over-hire in bull markets and over-fire in down markets,'' Goldstein said. ``This is just another example of that.''
New York has lost 10,000 financial services jobs since last August, a 3.5 percent decline, according to the Bureau of Labor Statistics in Washington. Those figures don't tell the whole story because employees receiving severance remain on payrolls.
[less]
Response by dco
about 18 years ago
Posts: 1319
Member since: Mar 2008
steve- That's a ton of high paying jobs. What I also noticed was the large loss in London (20,000). Isn't that where a lot of our foreign buyer were coming from. Lets see how many of the them are able to keep their Manhattan Vacation homes.
Ignored comment.
Unhide
Response by stevejhx
about 18 years ago
Posts: 12656
Member since: Feb 2008
Actually, dco, they're all coming from Spain, where prices have fallen 40% recently.
Jonathan Miller was on CNBC yesterday touting "foreign buyers" again. When will they stop?
"Home prices fall 15.3% in past year, Case-Shiller says"
"Wall Street has seen its fair share of bloodletting over the years, but this latest round brought about by the credit crunch is shaping up to be one of the worst in recent memory."
"Officials also said the revenues from taxes on real estate transactions, which have buoyed the day-to-day operations of the transit system in recent years, were falling off at an alarming rate, resulting in a shortfall this year of $122 million. Revenues from the real estate taxes are on track to end the year about $280 million below budget projections."
The amazing thing is, NONE OF THIS WILL AFFECT MANHATTAN REAL ESTATE! Because it's unique, isn't subject to market forces, EVERYBODY wants to live here, space is constrained, and our incomes are going up, so much so that soon we will all have chauffeur-driven Priuses and a actress/model/dancer/singer/songwriter/puppeteer trophy wife, or two or three.
Ignored comment.
Unhide
Response by MMAfia
about 18 years ago
Posts: 1071
Member since: Feb 2007
wait... now I'm getting a teeny bit worried. i mean, i know manhattan real estate never goes down and can only go up, but...
you guys sure this has nothing to do with Manhattan real estate? i know the world doesn't revolve around wall st but 175,000 jobs is pretty hard to shuffle under the rug. that's 3x the number of job lost than when the DotCom busted up.
hold on... it's the foreigners silly! they will save manhattan real estate. whew... you almost scared me there stevejhx! stop doing that!
Ignored comment.
Unhide
Response by stevejhx
about 18 years ago
Posts: 12656
Member since: Feb 2008
Well MMAfia, if you weren't sitting there in your miserable Jersey City one-bedroom with a view of where you REALLY want to live - Manhattan - you wouldn't be so bitter. So go ahead, piss your rent money away. Personally, I'm investing along with malraux in 15 CPW. I got a pad at the insider's price of $150k, now it's worth $405 million.
And it's only on the ground floor.
Ignored comment.
Unhide
Response by stealth1
about 18 years ago
Posts: 271
Member since: Feb 2007
stevehx, I only sometimes agree with your posts butyou just gave me a really good laugh with my morning coffee.
steve- That's a ton of high paying jobs. What I also noticed was the large loss in London (20,000). Isn't that where a lot of our foreign buyer were coming from. Lets see how many of the them are able to keep their Manhattan Vacation homes.
Actually, dco, they're all coming from Spain, where prices have fallen 40% recently.
Jonathan Miller was on CNBC yesterday touting "foreign buyers" again. When will they stop?
"Home prices fall 15.3% in past year, Case-Shiller says"
http://www.marketwatch.com/news/story/home-prices-fall-153-past/story.aspx?guid={515DBAA5-2119-4566-B7AB-C8A08F66B18A}&dist=hplatest
"A History of Wall Street Layoffs
"Wall Street has seen its fair share of bloodletting over the years, but this latest round brought about by the credit crunch is shaping up to be one of the worst in recent memory."
http://dealbook.blogs.nytimes.com/2008/06/24/a-history-of-wall-street-layoffs/index.html?hp
M.T.A. Cuts Delay Some Big Projects Until 2010
http://www.nytimes.com/2008/06/24/nyregion/24mta.html?ref=nyregion
"Officials also said the revenues from taxes on real estate transactions, which have buoyed the day-to-day operations of the transit system in recent years, were falling off at an alarming rate, resulting in a shortfall this year of $122 million. Revenues from the real estate taxes are on track to end the year about $280 million below budget projections."
The amazing thing is, NONE OF THIS WILL AFFECT MANHATTAN REAL ESTATE! Because it's unique, isn't subject to market forces, EVERYBODY wants to live here, space is constrained, and our incomes are going up, so much so that soon we will all have chauffeur-driven Priuses and a actress/model/dancer/singer/songwriter/puppeteer trophy wife, or two or three.
wait... now I'm getting a teeny bit worried. i mean, i know manhattan real estate never goes down and can only go up, but...
you guys sure this has nothing to do with Manhattan real estate? i know the world doesn't revolve around wall st but 175,000 jobs is pretty hard to shuffle under the rug. that's 3x the number of job lost than when the DotCom busted up.
hold on... it's the foreigners silly! they will save manhattan real estate. whew... you almost scared me there stevejhx! stop doing that!
Well MMAfia, if you weren't sitting there in your miserable Jersey City one-bedroom with a view of where you REALLY want to live - Manhattan - you wouldn't be so bitter. So go ahead, piss your rent money away. Personally, I'm investing along with malraux in 15 CPW. I got a pad at the insider's price of $150k, now it's worth $405 million.
And it's only on the ground floor.
stevehx, I only sometimes agree with your posts butyou just gave me a really good laugh with my morning coffee.
Glad to oblige.