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| Bank of New York Mellon to cut 1,800 jobs | |
| AP/ PTI / New York November 21, 2008, 9:57 IST | |
The Bank of New York Mellon Corp said it will cut its worldwide work force by 4 per cent, or about 1,800 jobs, blaming the weak global economy.
It's the latest in a string of banks to announce layoffs.
"It has become clear that we need to take additional steps beyond our merger synergies to reduce expenses, given the current weakness in the global economy," Chairman and Chief Executive Robert P Kelly said yesterday.
The bank said attrition would reduce the number of layoffs. It has 43,000 employees worldwide.
BNY Mellon was formed last year by the combination of Bank of New York and Mellon Financial Corp. It operates in 34 countries, providing financial services for institutions, corporations and wealthy individuals, and has $1.1 trillion in assets under management.
Last month, it reported that third-quarter profit tumbled 53 per cent on securities losses and a big charge to shore up funds hurt by the bankruptcy of Lehman Brothers.
BNY Mellon's announcement yesterday followed job cuts at other commercial and investment banks. JPMorgan Chase & Co. Is shedding about 10 per cent of its investment bank staff, according to a person who spoke yesterday on condition of anonymity because the cuts have not been publicly announced.
On Monday, Citigroup Inc said it would shed 53,000 jobs, some from selling lines of businesses, after the banking giant suffered huge losses from deteriorating loans.
Last week, Morgan Stanley said it would cut 10 per cent of staff in its biggest business and reduce jobs in other areas, although it wasn't clear how many of the securities firm's 44,000 employees would lose their jobs.
American Express said late last month it would cut 7,000 jobs, or 10 per cent of its work force.
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