This has put Asset managers and banks under pressure as volatility roils global markets and investors pile into passive, low-fee funds.
The financial industry is deploying technology across its businesses to reduce costs. Many economists have forecasted a slowdown or even a recession. Financial firms with operations in the UK could slow hiring ahead of the country’s anticipated exit from the EU.
The financial firms who have suffered setbacks include:
- Blackrock Inc., which has cut 3% of its global workforce, or about 500 employees, the largest reduction in its headcount since 2016
- State Street Corp., the giant custody bank and asset manager, which has started trimming its senior management ranks by 15%
- AQR Capital Management, the quant manager, which is also cutting jobs after a dismal 2018 performance
- Banco Santander SA’s Polish unit, which announced plans to reduce its workforce by 11%, which amount to a total of 1,400 jobs
- Morgan Stanley dismissed some of its under-performers, with cuts occurring throughout fixed-income, equities and research divisions
- Caixabank has contracted unions to start talks about staff cuts, reported Servimedia, citing people in the trade unions
- Nomura, which was planning to make more European job cuts to recoup some of its losses on global financial markets, reported HRM Asia