Feeds

IT depts under threat as City braces for 20,000 job cuts

Worse than dotcom losses

Intelligent flash storage arrays

The City of London could lose 20,000 jobs in the next two years as the credit crunch starts to bite.

As many as 11,000 jobs could be lost this year followed by another 8,200 redundancies in 2009.

The number of deals is also expected to fall - mergers and acquistions will drop 26 per cent this year and trading volumes on the London Stock Exchange will drop 36 per cent.

IT departments are likely to feel the pinch along with traders as banks look to cut costs and headcount. Research last month from the CBI predicted a big slowdown in IT spending in the finance sector. The CBI found IT spending overall likely to be flat. It also found a third of firms expecting to cut jobs in the next quarter.

Job losses will be worse than the dotcom crash, when 15,300 jobs were lost, according to research from the Centre for Economics and Business Research.

Worst hit will be corporate finance, investment banking and derivatives trading. Researchers say jobs lost already - at Royal Bank of Scotland and Citibank are just the tip of the iceberg.

In 2007 some 351,000 people were employed in City jobs - there won't be this number of jobs in the City again until 2012.

A global slowdown and consumer slump is likely to slow recovery until 2009.

Because London is so dependent on financial services its growth will slow to 1.3 per cent in 2008 and 2009.®

Secure remote control for conventional and virtual desktops

More from The Register

next story
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
How the FLAC do I tell MP3s from lossless audio?
Can you hear the difference? Can anyone?
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.