Investment Banking Job Carnage continues as Bank of America Fires 20% of its Asian Managing Directors

Jobs around the Globe are being cut at a vicious pace with major MNCs cutting jobs to reduce costs.With slowdown in the emerging makets and Europe, costs are being cut. Financial Jobs  are taking the worst hit as the sector has become bloated and is being shrunk.

Bank of America had already announced thousands of job cuts earlier. Today it cut 20% of its Asian MDs as it tries to cope with the sinking of investment banking revenues.Other investment banks like RBS,Nomura, BNP Paribas, Societe Generale are also cutting jobs with a vengeance. Goldman Sachs also announced big time salary cuts for its partners and fixed income trading.

Seeing Stocks Markets these days would make one think that the world economy has managed surpass the problems of the European Union Debt Crisis,the slowing of China,India’s governance led slowdown etc.However big global companies continue to bunker down reducing  job headcount and reducing investment.Despite record levels of cash and big profits,MNCs are not increasing their investment giving a thumbs down to efforts by policymakers to boost growth through record low interest rates.RBS has been rumored to cut 10,000 jobs in its investment banking division while Pepsi which has a mostly recession proof business too is cutting down.

BofA plans 30,000 job cuts; investors underwhelmed

Bank of America Corp said it will cut 30,000 jobs and slash annual expenses by $5 billion, but investors were unimpressed with the plan and the lack of details on how it will be accomplished. The staff reductions amount to more than 10 per cent of the bank’s workforce, and come as chief executive Brian Moynihan struggles to fix a bank whose share price has dropped nearly 50 per cent this year.