Asset managers and banks are under pressure as volatility roils global markets and investors pile into passive, low-fee funds. The $3 trillion hedge fund market has been hit hard as performance sank and funds closed last year. One recruiter thinks more shakeout lays ahead.
Michael Nagle/Bloomberg News
The financial industry is deploying technology across its businesses to reduce costs. Many economists forecast a slowdown or even a recession. Financial firms with operations in the U.K. could slow hiring ahead of the country’s anticipated exit from the European Union.
Here’s a list of negative announcements from firms globally since Jan. 1:
- BlackRock is cutting 3% of its global workforce, or about 500 employees, the largest reduction in its headcount since 2016.
- State Street, the giant custody bank and asset manager, has started trimming its senior management ranks by 15%.
- AQR Capital Management, the quant manager, is also cutting jobs after a dismal performance in 2018.
- Banco Santander’s Polish unit announced plans to reduce its workforce by 11%, or as many as 1,400 jobs.
- Morgan Stanley dismissed some of its under-performers, with cuts occurring throughout fixed-income, equities and research divisions.
- Caixabank has contacted unions to start talks about staff cuts, Servimedia reports, citing people in the trade unions.
- Nomura is planning to make more European job cuts to recoup some of its losses on global financial markets, HRM Asia reported.
