Sunday, June 29, 2008

Report: Financial lay-offs could be worst since tech bust


By Riley McDermid

NEW YORK (MarketWatch) - Financial firms may lose as many as 175,000 jobs in the next 12 months, a reduction that could exceed even the worst layoffs after the tech boom imploded in 2000 to 2003, a news report said Tuesday. "The worst is yet to come," Russ Gerson, head of New York-based recruiting firm Gerson Group, told Bloomberg News. "We are going to have a major contraction. This is affecting all areas of the investment banking universe and it's affecting all areas globally." The market was roiled Monday by rumors that banks Citigroup Inc. (C:
Citigroup, Inc may reduce their investment banking divisions by 10% as part of an effort by investment banks to reduce costs and streamline operations

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