Banks may shrink for good as layoffs near 160,000 Fri Nov 16, 2012 7:42am EST (Reuters) - Major banks have announced some 160,000 job cuts since early last year and with more layoffs to come as the industry restructures, many will leave the shrinking sector for good as redundancies outpace new hires by roughly two-to-one. A Reuters analysis of job cuts announced by 29 major banks showed the layoffs were much bigger in Europe than in Asia or the United States. That is a particular blow to Britain where the finance industry makes up roughly 10 percent of the economy. Well-paid investment bankers are bearing the brunt of cost cuts as deals dry up and trading income falls. That is particularly the case in some activities such as stock trading, where low volumes and thin margins are squeezing banks. "When I let go tons of people in cash equities this year, I knew most would be finished in this business. It is pretty dead. Some will just have to find something completely different to do," said one top executive at an international bank in London, on condition of anonymity. As banks shrink, fewer of those leaving are able to find equivalent jobs at rivals, head-hunters and bankers said, and only a small proportion of those are qualified to move into other jobs at hedge funds, for instance, which look for specialized, skilled traders. http://www.reuters.com/article/2012/11/16/us-banks-jobs-idUSBRE8AF0DA20121116
This is a positive development. Way to much fat in this business - trimming - and occasionally over-trimming - is healthy.
We need to go back to the 50s when Scientists and astronauts were heroes, and compensated well. Now instead of inventing things to better man kind, most scientists and gifted people go work in Wall street.
Traders will be in the banks, and the roulette wheel and craps table will be offered as an alternative to a savings account.
True, but lot of institutional trading has be taken over by tradebots. That can be one of the major reasons behind the layoffs. Robots are going to invade our society, yes INVADE our society in the next 5 years or even earlier. This might be a revolutionary change to the work force, similar to computers in 1980s. Only thing is Robots will also be cleaning your dishes and vaccum your house before you arrive home from work.