Merrill Lynch confirms IT job cuts
How many coders can you get for $7bn?
Merrill Lynch CEO John Thain has confirmed that the search for $7bn in cost cutting was likely to mean thousands of job cuts at the firm following its takeover by Bank of America.
Thain said the integration process had already begun after the $50bn bail-out.
"Most jobs will go on the infrastructure side - IT, finance and operations, where there is overlap between the two companies," Thain said. "We've not mapped it out in actual numbers of people but we're looking for $7bn in savings ... so it will be thousands of jobs," Bloomberg TV reports.
Once upon a time IT smarties could have expected to walk out of one employer, and straight into the arms of another. However, with Lehmans casting thousands into the wilderness, and other top end finance firms handing out pink slips the omens are not good.
A move into more mundane areas of finance is also unlikely. The merger of Lloyds TSB and HBOS is also expected to result in many redundancies for IT and support staff. A similar pattern is unfolding in the US.
Of course, if all else fails you can go work for the government. Except in the UK that is. Ministers have already outlined plans to streamline the Civil Service even as government revenues are hit by the economic slowdown. And local councils have got problems of their own, given that they have buckets of cash marooned in Iceland.®
It's a Wonderful Life
we need a return of the Building Societies.
People should be encouraged to invest in their local community, not into these mega global banks. They don't work.
These Lehaman bankers wanting to go into teaching and just kidding themselves (<-- get it :) ).
Instead they should do finance on a more legal, local and fair level, it they are capable of being fair. Money is meant to be used to move away from bartering, currently bartering is looking like a viable deal, they need to do a PR move on money, and that means coming into the trenches with the rest of us.
elephant in the room
What amazes me is that despite the economy going down the pan my employer (not Merrill Lynch or any other bank) can still get work permits to bring in coders, testers and project managers from outside the EU.
Meanwhile it is canvassing its UK IT staff for volunteers to be made redundant...
""Most jobs will go on the infrastructure side - IT, finance and operations, where there is overlap between the two companies," Thain said."
Surely there are also overlaps at the top? Both companies have boards of directors, for example. Of course that wouldn't occur to them. Big bonuses all round, boys!