Axe set to fall on City jobs

The Asian crisis will make more than 2,000 redundant in the Square Mile

CITY employees are bracing themselves for a cull of over 2,000 jobs as the effects of Asia's financial crisis spill over to the Square Mile.

"The knock-on effect from Asia will be seismic for the City," said Patrick Field, managing director of City head-hunting firm Hanover. "Asian and Japanese houses are very cost-conscious and they'll pull the plug quickly. They tend not to see out a downturn, unlike British banks." Higher-paid workers such as traders and salesmen will be the most vulnerable to the Asia-driven redundancies, Field predicted.

Job losses because of events in Asia will compound growing employment insecurity in the City caused by a wave of mergers in the banking and financial services industry. The merger between Union Banque of Switzerland and SBC Warburg, announced before Christmas, is expected to see 3,000 sackings.

Up to 500 jobs have already disappeared as a result of the turmoil. These include 350 at the London arm of Yamaichi, the Japanese stockbroker that went bankrupt last November. A handful of jobs have gone at BZW's London offices. Over 100 staff at the London operations of Peregrine Securities, the bust Hong Kong broker, are biting their nails as receivers try to find a buyer for the company.

South East Asian banks - those in the tiger economies of Indonesia, Thailand and Singapore - employ over 3,000 staff in London, while Japanese banks and brokers are estimated to have over another 10,000 staff. In total, 15,000 of the 250,000 people who work in the City depend on Asian markets.

"It's tough out there," said one recently sacked City whiz-kid. He expects 2,500 staff to be moved on by the middle of this year in London. Less than 20 per cent can hope to find another job in the market again.

Over the past five years, the City has made a fortune out of Asia, a boom now viciously brought to a halt. A good Asian trader in London would be expecting to earn anything up to pounds 100,000 with bonuses pushing his final salary up to pounds 250,000 in a good year. Even salesmen of medium rank can expect to make over pounds 100,000. While most of those made redundant will have a pay-off, many will have to scale back lavish lifestyles. That may take the froth off London's booming property market.

The pain felt in London is still nothing compared to what bankers in Asia are experiencing. On Friday, the Hong Kong Securities and Futures Commission put 18 stockbrokers in the territory on a watchlist. In Asia British investment bank Schroders sacked 200 staff while the French-owned SocGen-Crosby Securities has also made large cuts, rumoured to be about 100. At Peregrine, the collapsed Hong Kong investment bank, some 1,400 jobs have gone. BZW's Asian equities business, being sold to Credit Suisse First Boston, has sacked 175 workers and the final number will be much higher.

Anthony Cook, a senior consultant at head-hunter Morgan & Banks, points out that competition among sacked City workers for jobs will be exacerbated by expatriates returning from Hong Kong and Singapore.

One analyst from Malaysia has booked in to see London-based head hunters. He is pessimistic about the future and is looking for work in other emerging markets, like central Europe. "The way things are going, it looks bad wherever you look," he said.

Arts and Entertainment
Gregg Wallace in Summer's Supermarket Secrets
tv All of this year's 15 contestants have now been named
Sport
The giant banner displayed by Legia Warsaw supporters last night
football Polish side was ejected from Champions League
Arts and Entertainment
Could we see Iain back in the Bake Off tent next week?
tv Contestant teased Newsnight viewers on potential reappearance
Life and Style
A picture taken on January 12, 2011 shows sex shops at the Paris district of Pigalle.
news
PROMOTED VIDEO
News
i100(and it's got nothing to do with the Great British Bake Off)
News
Angelina Jolie with her father Jon Voight
peopleAsked whether he was upset not to be invited, he responded by saying he was busy with the Emmy Awards
News
Bill Kerr has died aged 92
peopleBill Kerr appeared in Hancock’s Half Hour and later worked alongside Spike Milligan and Peter Sellers
News
news It's not just the world that's a mess at the moment...
Sport
footballPremiership preview: All the talking points ahead of this weekend's matches
News
Keira Knightley poses topless for a special September The Photographer's issue of Interview Magazine, out now
people
News
ebooksAn evocation of the conflict through the eyes of those who lived through it
Voices
The Ukip leader has consistently refused to be drawn on where he would mount an attempt to secure a parliamentary seat
voicesNigel Farage: Those who predicted we would lose momentum heading into the 2015 election are going to have to think again
Arts and Entertainment
Cara Delevingne made her acting debut in Anna Karenina in 2012
film Cara Delevingne 'in talks' to star in Zoolander sequel
News
i100
Sport
Mario Balotelli pictured in his Liverpool shirt for the first time
football
Life and Style
tech
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Data Scientist (SQL,Data mining, data modelling, PHD, AI)

£50000 - £80000 per annum + benefits+bonus+package: Harrington Starr: Data Sci...

SAS Business Analyst - Credit Risk - Retail Banking

£450 - £500 per day: Orgtel: SAS Business Analyst, London, Banking, Credit Ris...

Project Manager - Pensions

£32000 - £38000 Per Annum Bonus, Life Insurance + Other Benefits: Clearwater P...

KYC Analyst, Birmingham - £200-£250 p/d

£200 - £250 per day + competitive: Orgtel: KYC Analyst, Key Banking Client, Bi...

Day In a Page

Ukraine crisis: The phoney war is over as Russian troops and armour pour across the border

The phoney war is over

Russian troops and armour pour into Ukraine
Potatoes could be off the menu as crop pests threaten UK

Potatoes could be off the menu as crop pests threaten UK

The world’s entire food system is under attack - and Britain is most at risk, according to a new study
Gangnam smile: why the Chinese are flocking to South Korea to buy a new face

Gangnam smile: why the Chinese are flocking to South Korea to buy a new face

Seoul's plastic surgery industry is booming thanks to the popularity of the K-Pop look
From Mozart to Orson Welles: Creative geniuses who peaked too soon

Creative geniuses who peaked too soon

After the death of Sandy Wilson, 90, who wrote his only hit musical in his twenties, John Walsh wonders what it's like to peak too soon and go on to live a life more ordinary
Caught in the crossfire of a cyber Cold War

Caught in the crossfire of a cyber Cold War

Fears are mounting that Vladimir Putin has instructed hackers to target banks like JP Morgan
Salomé's feminine wiles have inspired writers, painters and musicians for 2,000 years

Salomé: A head for seduction

Salomé's feminine wiles have inspired writers, painters and musicians for 2,000 years. Now audiences can meet the Biblical femme fatale in two new stage and screen projects
From Bram Stoker to Stanley Kubrick, the British Library's latest exhibition celebrates all things Gothic

British Library celebrates all things Gothic

Forthcoming exhibition Terror and Wonder: The Gothic Imagination will be the UK's largest ever celebration of Gothic literature
The Hard Rock Café's owners are embroiled in a bitter legal dispute - but is the restaurant chain worth fighting for?

Is the Hard Rock Café worth fighting for?

The restaurant chain's owners are currently embroiled in a bitter legal dispute
Caribbean cuisine is becoming increasingly popular in the UK ... and there's more to it than jerk chicken at carnival

In search of Caribbean soul food

Caribbean cuisine is becoming increasingly popular in the UK ... and there's more to it than jerk chicken at carnival
11 best face powders

11 best face powders

Sweep away shiny skin with our pick of the best pressed and loose powder bases
England vs Norway: Roy Hodgson's hands tied by exploding top flight

Roy Hodgson's hands tied by exploding top flight

Lack of Englishmen at leading Premier League clubs leaves manager hamstrung
Angel Di Maria and Cristiano Ronaldo: A tale of two Manchester United No 7s

Di Maria and Ronaldo: A tale of two Manchester United No 7s

They both inherited the iconic shirt at Old Trafford, but the £59.7m new boy is joining a club in a very different state
Israel-Gaza conflict: No victory for Israel despite weeks of death and devastation

Robert Fisk: No victory for Israel despite weeks of devastation

Palestinians have won: they are still in Gaza, and Hamas is still there
Mary Beard writes character reference for Twitter troll who called her a 'slut'

Unlikely friends: Mary Beard and the troll who called her a ‘filthy old slut’

The Cambridge University classicist even wrote the student a character reference
America’s new apartheid: Prosperous white districts are choosing to break away from black cities and go it alone

America’s new apartheid

Prosperous white districts are choosing to break away from black cities and go it alone