U.S. financial services and brokerage companies could lay off another 70,000 workers in an effort to cut costs in the face of a sharp economic downturn and credit constraints, according to a published report.
Layoff plans will be finalized this month as companies prepare next year’s budgets, the Financial Times reported. The estimate of 70,000 losses is based on opinions of “executives and analysts,” the paper said.
About 150,000 financial services jobs have already been lost worldwide, according to the FT.
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Investment banks and trading businesses will be the hardest hit, the paper said.
Since Labor Day, the U.S. has lost more than a half million jobs and that number is expected to go much higher before it gets better. In October, 240,000 jobs were lost, taking the unemployment rate to 6.5 percent, its highest level since 1994.