MacroScope

Financial headcounts stabilize in 2009

After financial firms slashed hundreds of thousands of jobs in 2007 and 2008, the bloodletting slowed in 2009 as major banks rebounded from the financial crisis. Even though firms like Goldman Sachs Group Inc and JPMorgan Chase & Co reported billions of dollars in profit, they still did not announce major hiring initiatives.

Recession layoffs Headcount (end 2008) Headcount (end 2009) Bank of America 45,000 240,202 283,717* Citigroup 75,000 323,000 265,000 Goldman Sachs 4,800 34,500 32,500 J.P. Morgan 23,700 224,961 222,316 Morgan Stanley 8,680 45,295 61,388* UBS 19,700 77,783 65,233 Credit Suisse 7,320 47,800 47,600 Barclays 9,050 152,800 144,200 Deutsche Bank 1,380 80,456 77,053 Santander 2,600 170,961 169,460

* Includes additional employees from Morgan Stanley Smith Barney merger and Bank of America’s merger with Merrill Lynch, both of which were completed in 2009 (Steve Eder and Steve Slater)

So many ways to say goodbye

It takes a delicate touch to make job cuts sound more palatable. As U.S. companies reduce payrolls by the thousands, the press releases seem to be getting more and more creative.

Check out today’s announcement from The Reader’s Digest Association, which is eliminating 8 percent of its global workforce and suspending matching contributions to employees’ 401(k) retirement accounts. Somehow it stings a bit less when you tell employees that it’s all part of a ”Recession Plan” right?

“We have announced a comprehensive ‘Recession Plan’, which is our internal roadmap for dealing with the extraordinary effects of this recession on consumer spending,” Mary Berner, president and CEO, said in a statement.