Wall Street may be improving its position in the financial sector, but other areas of the world are still struggling to survive the crumbling global economy.
According to Bloomberg, the impending job cuts are the result of plunging fees from mergers and securities underwriting, which have hit a nine-year low.
In America, new firms are popping up all over the place, presenting job seekers with fresh employment opportunities. Hires actually rose for the entire sector in 2011. But only in the United States — the rest of the world seems to be facing the challenges that America recently endured.
The biggest lenders in Switzerland, UBS and Credit Suisse, face the “most pressure to boost efficiency,” Bloomberg reports, “as that country runs ahead of others in introducing tougher capital and liquidity rules to curtail risk-taking, making some businesses unviable.”
The most alarming data surrounds the revenue per employee at the investment banks of both UBS and Credit Suisse, which has dropped 50 percent over the last five years. As of 2011, revenue per employee at UBS was $612,707; at Credit Suisse, it was $622,654.
Deutsche Bank also experienced a decline in revenue per employee at its corporate banking and securities divisions, which has declined 14 percent since 2006. Barclays’ revenue per employee declined by 9.3 percent.
Bloomberg said that if these firms cannot find a way to boost revenue in 2012 or 2013, “the pressure to cut more jobs and shrink their securities units will intensify.”
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