Financial services sector faces rise in job cuts

Financial services companies expect to cut jobs at the fastest pace for two years in the coming months, according to a survey.

Tough cost controls helped the sector return to growth since the summer – but firms said they would have to reduce staff numbers further to keep this up.

Life insurance companies and banks are expected to make the most staff reductions, while finance houses and building societies are set to create jobs at the fastest rate.

The quarterly study from the CBI employers’ group and professional services consultancy PricewaterhouseCoopers (PwC) showed the number of people employed in financial services fell for the second consecutive quarter.

Expectations for employment in the coming three months were at the lowest level since December 2002.

John Hitchins, UK banking leader at PwC, said: “The recent reduction in headcount is expected to intensify in the banking, fund management and insurance sectors.”


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