The Centre for Economic and Business Research has predicted that more than 6,000 jobs will be lost in the City of London as a direct result of the credit crunch.
’We expect to see weaker economic data seep into the market and that could trigger more job losses,’ said Jonathan Said, senior economist at the CEBR.
UBS said this week it planned to axe 1,500 jobs in fixed income units in London and New York.
Morgan Stanley announced it was firing about 600 employees in its residential mortgage businesses, including about 90 at Advantage, its UK home-lending unit.
Lehman Brothers made about 2,500 residential-mortgage employees redundant in the summer.