10,000 City jobs under threat

Northern Rock and Bear Stearns employees won’t be the only to suffer as a result of difficult market conditions

At least 10,000 roles could be culled in the UK’s financial services sector over the next three months, according to the Confederation of British Industry.

The CBI’s report also found that morale in the sector was unsurprisingly low, but that it had actually dipped again since December – 90% of respondents now said the credit squeeze will continue for longer than six months compared with 70% when asked the same question in the last quarter.

Nearly all businesses (97%) believe that there is a good chance credit conditions will worsen over the next six months – 35% said it was a ‘high’ likelihood and 62% said it was ‘medium’.

The credit crisis is also beginning to impinge on company growth, according to the CBI’s report – 40% of respondent firms said that their ability to raise funds will be a constraint on business growth in the coming year.

© Crimson Business Ltd. 2008


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