Recruitment freeze at Merrill Lynch to cut headcount worldwide

Investment bank Merrill Lynch is continuing its cost-cutting programme with a freeze on staff recruitment that will cost further jobs in the UK.

Up to 5,000 jobs worldwide will be cut, including 400 in the City, as the company announced last week. This will now be followed by a recruitment freeze to reduce the company’s 4,500 London-based headcount.

It is understood that some jobs may go in the bank’s HR department, as only financial advice and client associate positions will be filled.

A leaked memo from Gregory Fleming, president and chief operating officer, to Thomas Sanzone, chief administrative officer, at the bank’s New York head office said: “A global hiring freeze will be in place for the remainder of the year. This freeze covers any incremental hires including previously approved budgeted hires and replacement hires. This policy does not apply to financial advisers or client associates who the firm will continue to recruit and hire in line with business plans.

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

Email(Required)

OptOut

From time to time, we will send you emails about selected products, events and services from Personnel Today and OHW+ - but you can choose to opt-out at any time. If you do not wish to receive these emails, please tick this box.

Name

This field is for validation purposes and should be left unchanged.

Δ

“Typically, the majority of the firm’s hiring occurs during the first and second quarters of the year with the third and fourth quarters progressively tapering off,” the memo said.

Meanwhile, a Merrill Lynch banker has commented on a UK financial news site to vent about the firm’s financial troubles, warning that the freeze was ‘just the tip of the iceberg’.