Job layoffs here, there and everywhere

James Ryan Jonas

Also read: 126,000 more workers worldwide to lose jobs and Job losses in the Philippines
If you’re still wondering about the impact of the US subprime mortgage problem, just read the business news and you’ll see who the casualties are: the employed — or more appropriately, the ex-employed.
According to the latest news, the financial sector has announced — from January to May 2008 alone — that more than 66,000 people will be fired in the US and in other countries.
Multinational investment bank Citigroup Inc. announced last week that it will continue to cut thousands of trading and investment banking jobs this year as part of its reported plan to slash about 10% of its investment bank division globally. In March, Citigroup already laid off more than 9,000 people.
Another bank, Lehman Brothers, is expected to cut an additional 1,400 jobs this year. In the past 10 months, the company has already fired 5,000 workers around the world.
Switzerland-based asset management firm UBS also announced that it will reduce its workforce by almost 7% or around 5,500 employees.
Morgan Stanley, Goldman Sachs, and Merrill Lynch are planning cuts in their banking divisions as well.
Investment banks are not the only ones feeling the effects of the subprime crisis. Germany-based conglomerate Siemens AG announced last week that it will also fire or early retire 17,200 employees globally, slashing workforce by as much as 4%. More than 6,400 of those job cuts will come from Germany alone.
Without a doubt, more and more people and firms are being affected by this economic crisis. With no sign of it ending, the frightening question is: Who’s next to fall?
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James Ryan Jonas teaches business management, investments, and entrepreneurship at the University of the Philippines (UP). He is also the Executive Director of UP Provident Fund Inc., managing and investing P3.2 Billion ($56.4 Million) worth of retirement funds on behalf of thousands of UP employees.