Meredith Whitney, analyst and founder of Meredith Whitney Advisory Group spoke on Bloomberg Television's Bloomberg Surveillance Wednesday, discussing her expectations for more Wall Street layoffs.
Whitney said that she expects 50,000 - 100,000 jobs cuts to come across the board, pointing out that the industry is facing an 'extremely challenged revenue environment for the foreseeable future'.
In the meantime, Reuters reports that up to 15% of the 500,000 jobs in investment banking could disappear in the next five years as the euro zone crisis and stiffer regulation hammers revenue, profitability and risk-taking.
A study by Roland Berger Strategy, one of the world's leading consulting firms, suggests that investment banking global revenue is set to fall by 15% this year, while average return on equity could slide to 5% from 15% in 2010, fuelling the need to cut up to 75,000 jobs.
Investment banks could cut 75,000 staff by 2017 - study
Finally, The Wall Street Journal reports that Bank of America is accelerating plans to cut costs. The newspaper says that a document given to senior management outlines the bank's plans, which could now see 16,000 jobs going in the second-half of the year, taking headcount back down to 260,000.
Source: Bloomberg
image: © aiden
The Alchemists: Three Central Bankers and a World on Fire
Hubris: How HBOS Wrecked the Best Bank in Britain
