The Centre for Economic Business Research (CEBR) has warned the City to brace itself for up to 10,000 job cuts. The economic think tank that releases economic forecasts twice a year says that a previous prediction three months ago of 6,500 job cuts is likely to increase to something closer to 10,000 when new data is published next month.
The group bases its predictions by monitoring activity in the City and then predicting how many jobs would be needed to maintain those levels.
Several thousand jobs have already been lost at some of the leading City banks, including Citigroup, Morgan Stanley, Goldman Sachs, Deutsche Bank and Merrill Lynch.
Northern Rock is expected to cut 2500 of its 6000 workforce in the immediate future.
CEBR Cheif Executive Doug McWilliams says that confidence is ‘rather weaker than we had assumed. Its all to do with confidence and confidence is one of those things which is tremendously fragile and volatile.’
He warns that the number of job cuts could go higher still, but did not expect losses to be as severe as in the dotcom crash in 2001, when 20,000 jobs were lost.
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