Cantor Fitzgerald Slashes Jobs, Prepares To Cut More Amid Economic Downturn
Even before the virus pandemic crashed the global economy into recession, if not depression, for the second quarter, the investment bank industry was already on shaky ground.
Now Cantor Fitzgerald has joined the party by slashing jobs to reduce costs and shore up operations.
Sources told Bloomberg that Howard Lutnick, the CEO of Cantor Fitzgerald, has already slashed jobs across capital markets and commercial real estate units, with hundreds of more cuts expected through April.
“We have made prudent headcount and cost reductions to position the firm for the uncertain macroeconomic conditions expected for the remainder of the year,” the investment bank said in a statement.
People familiar with the cuts said Lutnick is taking precautionary measures as he worries about an economic downturn triggered by COVID-19 could extend through the year.
Lutnick appears to be breaking ranks from other major investment banks, including Morgan Stanley, Goldman Sachs, and Citigroup, who have all promised jobs will not be axed this spring. But with an economic depression unfolding and 22 million Americans jobless in four weeks, Lutnick is taking no chances and is tightening up operations as economic uncertainty plagues the 2020 outlook.
Sources said the cuts represent about 5% of Cantor’s workforce, with more reductions in some units than others. In total, the investment bank employs 12,000 people around the world.
Even with the Federal Reserve unleashing record amounts of stimulus, bailouts, and now buying ETFs, capital markets will likely remain damaged throughout the year – leading to further job losses for the investment bank community.
Fri, 04/17/2020 – 11:05