Job cuts: is the worst still to come?

28 January 2009

1 minute read

Now that Australia Day is over, 2009 can finally begin in earnest. But the banking sector might wish it was still on vacation - more bloodshed looms on the horizon.

Just how bad do you think the redundancies will be this year? Which banks will cut the deepest and which job functions are most vulnerable?

There is a feeling that banks have been holding back on further layoffs in the slim hope that January might bring some signs of hope in the financial markets. But as the local economy slumps and global banks post more staggering losses, are the redundancy floodgates now opening even wider?

MLC, the wealth management wing of NAB, has already started the post-holiday heartache by slashing 120 staff. This is a bitter blow for an industry already reeling from Q4 job cuts at Macquarie, AMP, Perpetual and ANZ, to name but a few.

But is the MLC move just a one-off, or a signal of more slaughter this summer? Is Australia the next New York when it comes to putting bankers on the scrapheap? Let us know your thoughts below.

AUTHORAnonymous

Insider Comment

Ex
ExLondoner
3 February 2009
IB's pulling out, local capital markets closed, USPP market dead - what option does corporate Australia have but the Big 4? Lending margins will skyrocket in 2010 but costs will have to be held down in 2009 to mitigate the impact of shoddy lending of recent years e.g ABC, Allco. Banks will need to hang on to decent originators for next year.
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IronOre
31 January 2009
Im vice pres of a finance society at a uni in Sydney. From the impression I have gained, most trading firms are still ready to give out big cash to recruit graduate talent, so it's not all grim news.
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Simon Mortlock
30 January 2009
New York One,
It would be good to chat to you about your experiences of coming back from NY and finding work in Australia.
If you're interested, please drop me a line: smortlock@efinancialcareers.com
Many thanks,
Simon Mortlock
Asia-Pacific Editor
eFinancialCareers
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New York One
30 January 2009
I just got hired at a global having come back from New York. My view is that a lot of the firing is related to the companies wanting to weed out underperformers and also reduce numbers to meet headline politically pressures.
Hang in there and stay strong.
There is plenty of work and needs out there. Restructuring debt, new issuance and replacement of maturing debt.
Better days are ahead. I'll remember the people who treated us well during the tough times and those who didn't.
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DMan
29 January 2009
Due to the Big 4 Banks holding such a dominant position in the Aussie market, 2nd tier banks unable to fund deals and the internationals pulling out. None of the big Aussie banks can afford to let any front -ine revenue-generating bankers go because if they do they very simply will lose market share which will mean less revenue. In a market which has become so competitive, it just won't make sense for them to let front line staff go. If they act commercially, they should re-invest into the business and expand their sales capacity.
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