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Finance Layoffs: Bank of America, Fidelity, Carlyle and more

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Published January 9, 2009 at 1:13 PM

Pink_Slip_transparent.gifMore pink slips came out in December than in the previous months, raising the nation's unemployment rate to 7.2%, according to a report released by the Labor Department. Last month 524,000 jobs were lost with 14,000 from the the financial services and real estate sector, according to CNBC. For all of 2008, the economy lost a net total of 2.6 million jobs. Unfortunately, many of those lost jobs were in financial services industry, and many more jobs are still being lost as banks continue to merge and restructure.

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Here's the latest list of layoffs in the financial services industry:
 
  • Bank of America Corp. is expected to eventually lay off 35,000 people over three years as it integrates Merrill Lynch & Co. Merrill Lynch also closed its equity research outfit in Kuala Lumpur.
  • The Carlyle Group has plans to cut its 1,000 employee staff by 10%. It closed offices in Menlo Park, Calif., and Warsaw.
  • GMAC LLC announced plans to close all of its 200 retail offices and lay off about 5,000 employees, with the bulk of those job cuts coming at ResCap.
  • Mutual of Omaha Bank has laid off about 100 people across Arizona, Nevada and California as it integratess the assets of First National Bank of Arizona, which failed in  July.
Many of those jobs on Wall Street may never return with banks merging and the failure of large institutions such as Lehman Brothers Holdings Inc. and Bear Stears Cos. "The big banks are going to be on life support for at least 18 months, if not 36 months," Oppenheimer analyst Meredith Whitney recently told CNBC. "The big banks will not fail, but the big banks will not grow, in my opinion, for at least another two years."

However, the M&A market, followed by hiring, is expected to come back in the second half of 2009, Randy Gulian of search firm InSearch Worldwide told The Deal's Suzanne Stevens.

Check out TheDeal.com's Career Center for the latest postings. - Maria Woehr

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