Wall Street to Face 10,000 Job Cuts Before 2012

October 12 00:00 2011

New York, October 12 (RainbowNewsLine.com) – Wall Street employees, who are often been characterized as ruthless, greedy and immoral, may be facing the revenge of karma. According to a statement released by Thomas DiNapoli, who is a New York City comptroller, Wall Street is staring in the face of 10,000 job cuts before 2012, if the financial services industry is to remain financially viable. If these job cuts are put into effect, the total toll may rise to 32,000 jobs.

Although the European debt crisis is ensuing on the other side of the Atlantic, Wall Street is facing the ripples. Most of the big names on Wall Street have exposure to some of these toxic assets. Moreover, no one is certain about the amount of exposure others have. Hence all financial institutions across Wall Street are not willing to help each other out.

Since, the Euro default is virtually certain, many big names may have to take massive losses. In order to stay competitive, they will have to cut costs and what better way to cut costs that downsize a few employees, freeze pay hikes, cut the size of bonuses and other benefits.

New York City’s revenues have also been hit. Financial sector, which previously used to account for 13% of the city’s revenue now accounts for a paltry 7%.