103,000 fewer jobs in the banking sector

The five biggest British banks, including the Royal Bank of Scotland and Lloyds Banking Group, from 2008 until today have cut more than 103,000 jobs and is expected to proceed and to more cuts. It highlights the agency Bloomberg, the figure corresponds to 11% of the total workforce are the UK banks worldwide. At least 34,500 of those who lost their jobs, working in Britain. However, the departments of the banks will not be affected much.

Banking analyst at PricewaterhouseCoopers in London, Andrew Gray, points out that banks have plans to aggressively reduce costs, “which suggests that further cuts.” He adds that in many cases, the cost savings will be made in global operations and will expand in the international cost base. The British banks cut jobs and sell assets shrinking their balance sheets by 1.5 trillion pounds from the 2008 crisis, as banks reduce their leverage and are subject to stricter rules in regard to their capital from the beginning. Companies in the financial industry worldwide, plans to cut more than 16,000 positions in the first half of 2011, according to the Confederation of British Industry. The biggest cuts were executives of RBS and Lloyds, which have received state support.