UK – Up to 350,000 jobs in UK could be axed over the next 18 months as companies attempt to survive through the global financial crunch.
According to the study by Hay Group and the Centre for Economic and Business Research (CEBR), business leaders expect to cut their workforces by an average of 1.1%. This is equivalent to around 350,000 layoffs. The study also revealed UK companies of all sizes are expected to cut staff and suffer lower profits until at least 2010.
“UK businesses are facing the most challenging economic environment for more than a decade, as the impact of the credit crunch ripples across the economy and inflation picks up as input prices rocket,” John Ward, managing economist of CEBR told Guardian UK.
A huge chunk of job cuts will likely involve the financial services sector. The Wall Street Journal reported on Sunday that Citigroup, which has lost S$20 billion in the last six months, is planning to dismiss 6,500 posts from its investment banking division. The cut amounts to as much as 10% of its worldwide division's workforce.
The aggressive layoffs are expected to include some cuts in the UK. Goldman Sachs is also reportedly planning to cut 10% of its investment banking staff, the Wall Street Journal reported.
