Feeds

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

Worse than dotcom losses

Boost IT visibility and business value

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
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
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.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.