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http://www.thisislondon.co.uk/standard/article-23586947-details/20%2C000+jobs+go+in+one+week/article.do
20,000 jobs go in one week
Nick Goodway and Joe Murphy 14.11.08
LONDON bankers were facing a new wave of redundancies today as Britain headed for 20,000 job losses in five days.
Citigroup is to send redundancy notices to 10,000 workers worldwide, many in Canary Wharf, while Royal Bank of Scotland is to shed 3,000 investment bankers, including hundreds in the City, within a month.
The scale of the cuts means 20,000 jobs have gone across the country since Monday as the economic downturn strengthens its grip and sends unemployment soaring.
In just a week some of the country's biggest names - including BT, Virgin Media, GlaxoSmithKline and Taylor Wimpey - have slashed jobs.
The cuts have prompted predictions that unemployment will hit two million by Christmas and three million next year.
The economy was dealt a fresh blow as the countries which form the euro-currency zone were on the brink of going into recession for the first time.
Gordon Brown, today preparing for crisis talks in Washington, pleaded for "co-operation" among the G20 group of the wealthiest nations.
Not since the recessions of the early Eighties and Nineties have so many large-scale job cuts been announced in such a short space of time across such a wide range of industries.
Unemployment in Britain rose to its highest level in the 11 years since Labour came to power this week at 1.83million. Analysts predict it could rise as high as three million in the next year.
Citigroup is set to start handing out redundancy notices to up to 10,000 people across the world, mainly in its investment bank but also in other divisions. The Wall Street and Canary Wharf-based bank has lost more than $20billion in the past year. Managers have been ordered to cut their departmental wage bills by at least 25 per cent. Royal Bank of Scotland, which is being partly nationalised through a £20billion government bail-out, is to cut 3,000 jobs over the next four weeks.
All the cuts are likely to come in its investment banking division, which it calls Global Markets. The job cull will be across the globe but is likely to see significant losses in the City of London. Many of the casualties are expected to be in what was ABN Amro, the Dutch bank which RBS took over at the top of the market shortly before the credit crunch began in the summer of 2007.
High Street operations including its NatWest offshoot are not expected to be affected by the latest round of redundancies. But with RBS now expected to make the first annual loss in its history this year more jobs could be under threat.
More banking job cuts are expected with Morgan Stanley due to lose 10 per cent of its worldwide workforce of 4,500. That could lead to about 250 jobs going at its Canary Wharf offices.
One City economist, who asked not to be named, warned the tide of job losses was only the beginning. "This is going to get much, much worse," he said.
"Here in the City it has been a long time coming. For months now it's been obvious that many of the financial markets, particularly in the credit areas, are totally closed. If you have hundreds of people effectively sitting around doing nothing, they are going to get canned."
He spoke as the Eurozone economy was to be declared to be in recession today. It's everywhere," said another economist. "Wherever you look around the world, countries are either in recession or about to go into recession. The employment market will reflect that."
Australia and New Zealand Banking group today confirmed that it plans to cut at least 500 jobs in management as part of a "belt-tightening exercise".
Northern Rock cut 1300 jobs in August and the Lloyds TSB-HBOS merger, part of the Government's £37billion bail-out, early next year is expected to lead to thousands of job losses.
BT announced 10,000 job losses yesterday with up to 7,000 in the UK. Virgin Media is planning to shed 2,200 posts, yellow pages publisher Yell is cutting 1,300 jobs and housebuilder Taylor Wimpey is losing another 1,000 jobs.
20,000 jobs go in one week
Nick Goodway and Joe Murphy 14.11.08
LONDON bankers were facing a new wave of redundancies today as Britain headed for 20,000 job losses in five days.
Citigroup is to send redundancy notices to 10,000 workers worldwide, many in Canary Wharf, while Royal Bank of Scotland is to shed 3,000 investment bankers, including hundreds in the City, within a month.
The scale of the cuts means 20,000 jobs have gone across the country since Monday as the economic downturn strengthens its grip and sends unemployment soaring.
In just a week some of the country's biggest names - including BT, Virgin Media, GlaxoSmithKline and Taylor Wimpey - have slashed jobs.
The cuts have prompted predictions that unemployment will hit two million by Christmas and three million next year.
The economy was dealt a fresh blow as the countries which form the euro-currency zone were on the brink of going into recession for the first time.
Gordon Brown, today preparing for crisis talks in Washington, pleaded for "co-operation" among the G20 group of the wealthiest nations.
Not since the recessions of the early Eighties and Nineties have so many large-scale job cuts been announced in such a short space of time across such a wide range of industries.
Unemployment in Britain rose to its highest level in the 11 years since Labour came to power this week at 1.83million. Analysts predict it could rise as high as three million in the next year.
Citigroup is set to start handing out redundancy notices to up to 10,000 people across the world, mainly in its investment bank but also in other divisions. The Wall Street and Canary Wharf-based bank has lost more than $20billion in the past year. Managers have been ordered to cut their departmental wage bills by at least 25 per cent. Royal Bank of Scotland, which is being partly nationalised through a £20billion government bail-out, is to cut 3,000 jobs over the next four weeks.
All the cuts are likely to come in its investment banking division, which it calls Global Markets. The job cull will be across the globe but is likely to see significant losses in the City of London. Many of the casualties are expected to be in what was ABN Amro, the Dutch bank which RBS took over at the top of the market shortly before the credit crunch began in the summer of 2007.
High Street operations including its NatWest offshoot are not expected to be affected by the latest round of redundancies. But with RBS now expected to make the first annual loss in its history this year more jobs could be under threat.
More banking job cuts are expected with Morgan Stanley due to lose 10 per cent of its worldwide workforce of 4,500. That could lead to about 250 jobs going at its Canary Wharf offices.
One City economist, who asked not to be named, warned the tide of job losses was only the beginning. "This is going to get much, much worse," he said.
"Here in the City it has been a long time coming. For months now it's been obvious that many of the financial markets, particularly in the credit areas, are totally closed. If you have hundreds of people effectively sitting around doing nothing, they are going to get canned."
He spoke as the Eurozone economy was to be declared to be in recession today. It's everywhere," said another economist. "Wherever you look around the world, countries are either in recession or about to go into recession. The employment market will reflect that."
Australia and New Zealand Banking group today confirmed that it plans to cut at least 500 jobs in management as part of a "belt-tightening exercise".
Northern Rock cut 1300 jobs in August and the Lloyds TSB-HBOS merger, part of the Government's £37billion bail-out, early next year is expected to lead to thousands of job losses.
BT announced 10,000 job losses yesterday with up to 7,000 in the UK. Virgin Media is planning to shed 2,200 posts, yellow pages publisher Yell is cutting 1,300 jobs and housebuilder Taylor Wimpey is losing another 1,000 jobs.
