European banks had to cut more than 60,000 jobs, because they are faced with the problem of falling profitability
Lenders of Germany, UK, Spain and Switzerland have suffered because of Brexit, slowing economic growth, greater control from regulators and negative interest rates the European Central Bank.
It is reported psm7.com
The number of employees of the 10 largest banks in Europe was reduced to 1 100 000 people. This is 5 times less than in 2008. Employment in the TOP 10 U.S. banks fell by about 7%.
The greatest reduction occurred in the U. s 18,000 people lost their jobs. Steps were taken to get rid of unwanted assets in the amount of 288 000 000 000 Euro after a failed attempt to merge with Commerzbank.
Leading French financial conglomerate, Société Générale cut 1 600 jobs in its division of securities and trade is about 8% of employees. This decision was taken in order to save 500 000 000 € annual costs.
In the UK, interim Executive Director of HSBC’s Noel Quinn is developing a strategy to reduce costs, which the Bank will have to fire thousands of employees.
Moody’s predicts that in the medium term, “the gap in profitability between banks in the Eurozone and global banks will increase” further.