The US financial services industry witnessed a bleak employment outlook as layoffs in April this year hit 2,847, a 275% increase compared to April last year.
The surge of job cuts last month in the financial services industry was the highest since late last year.
As new hiring figures remain relatively unchanged, the gap between hiring and layoffs on Wall Street is significantly widening.
The figures come from a recent ‘job cut report’ authored by outplacement firm Challenger, Gray & Christmas.
Integrity Research said the development is “consistent with our view that Wall Street executives are trying to shrink staffing levels as profits remain under pressure.
Recent first quarter revenue declines have dramatically reduced revenues across investment banks, with many reducing headcounts in struggling business units in order to cut costs.
“Investment banks and brokerage firms are continuing to cut expenses and are unwilling to replace staff when job openings become available”, Integrity Research concluded.
In April, Japanese investment bank Nomura confirmed it would be shutting down its European equities business, slashing hundreds of jobs in the US and Europe.
A number of other banks have also made significant headcount reductions in recent months.