Feeds

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

Worse than dotcom losses

Build a business case: developing custom apps

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.®

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.