Will UK's financial services industry go through more job cuts?

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The financial services industry is set
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for another wave of painful job cuts.
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The sector is anticipating widespread
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losses after activity fell at the
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fastest rate since December 2023 in the
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three months to June. Fresh data from
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the Confederation of British Industry,
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the CBI, showed this was the first time
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activity in the sector had decreased in
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more than a year. Banks dragged down the
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performance as businesses anticipated
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slower activity for the coming months.
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Lenders were also ripe for job cuts with
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Standard Chartered and HSBC responsible
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for the biggest cults after putting 4.5%
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and 4.3% of employees on the chopping
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block. Total employee numbers at British
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banks slumped 5.25% to over 580,000
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falling to the lowest number in a
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decade. The financial services industry
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joins other sectors in trimming
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headcounts. The big four accountancy
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firms, Deote, EY, KPMG, and PWC, employ
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over 100,000 people across the UK, but
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have recently taken measures to
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drastically reduce their staffing. KPMG
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has placed graduate intakes on the
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chopping block with a reduction to 942
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compared to 1,399 in 2023. This comes as
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the accountancy giants pile cash into AI
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and develop their own tools to take on
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entry-level work. British banks have
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also begun to roll out AI across their
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operations. Earlier this year, Nat West
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partnered with OpenAI to focus on a
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bankwide simplification. The firm said
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it would deploy some of the latest and
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most powerful developments in generative
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AI through its access to OpenAI's latest
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technology and insights. Its peer Lloyds
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launched its center of excellence for AI
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in 2024. As lenders race to beef up
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their tech offering, CTAM revealed in
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February that Lloyds had put some 6,000
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jobs in its IT division under review as
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a part of an overhaul to scale up its
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tech ambitions. For the latest on
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banking and the financial services
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industry, head to cam.com.
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Will UK's financial services industry go through more job cuts?

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