Top financial firms cut jobs amid 2019 market turmoil
Asset managers and banks are under pressure as volatility roils global markets and investors pile into passive, low-fee funds. The $3 trillion hedge fund market has been hit hard as performance sank and funds closed last year. One recruiter thinks more shakeout lays ahead.
The financial industry is deploying technology across its businesses to reduce costs. Many economists forecast a slowdown or even a recession. Financial firms with operations in the U.K. could slow hiring ahead of the country’s anticipated exit from the European Union.
Here’s a list of negative announcements from firms globally since Jan. 1:
- BlackRock is cutting 3% of its global workforce, or about 500 employees, the largest reduction in its headcount since 2016.
- State Street, the giant custody bank and asset manager, has started trimming its senior management ranks by 15%.
- AQR Capital Management, the quant manager, is also cutting jobs after a dismal performance in 2018.
- Banco Santander’s Polish unit announced plans to reduce its workforce by 11%, or as many as 1,400 jobs.
- Morgan Stanley dismissed some of its under-performers, with cuts occurring throughout fixed-income, equities and research divisions.
- Caixabank has contacted unions to start talks about staff cuts, Servimedia reports, citing people in the trade unions.
- Nomura is planning to make more European job cuts to recoup some of its losses on global financial markets, HRM Asia reported.