JP Morgan cuts IT staff as further job losses hit IT sector

The finance sector is poised for further job losses, raising concerns for back office IT staff as Barclays and JP Morgan move to reduce their headcount.

JP Morgan confirmed earlier today that it will cut up to 180 jobs at its Swindon office. The Swindon office provides middle and back office outsourcing services to a client, Threadneedle, which is leaving to go to another provider.

JP Morgan confirmed that there would be a staff reduction in Swindon, but declined to make further comment on the situation.

Barclays is also expected to see significant job losses following reports that it is to under a major restructuring operation as part of £2 billion cost saving exercise, according to the Financial Times.  

The banking group is expected to make a full statement regarding changes tomorrow, with the wide-ranging overhaul expected to bring an end to its structured capital markets division, which has been criticised in the past for running tax avoidance schemes. 

Outsourcing

Total losses of up to 2,000 staff are expected to occur through its business, with many jobs are expected to be outsourced to India, raising the prospect of IT job losses.

Last month Lloyds also announced that a number of jobs would be off-shored to India, with IT staff at the bank criticising plans to replace experienced employees with outsourced workers.

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There was some positive news for financial jobs today however, with a Morgan McKinley report highlighting that hiring had increased during January.

The London Employment Monitor report showed a 76% increase in newly available financial services jobs between December 12 and January 13, rising from 1,323 new roles to 2,331.   

On a yearly basis however this figure fell, with an 18% decrease as the number of new jobs on the market dropped from 2,835 in January 2012.

Compliance

Many of the new jobs are focusing on IT intensive areas such as compliance, said Hakan Enver, operations director, Morgan McKinley Financial Services.

“Adhering to regulatory change continues to be where the hiring market is busiest; compliance hiring is focused on anti-money laundering and prevention of financial crime following a number of high profile cases linked to global socio-economic problems such as organised crime and terrorism,” he said.

“Furthermore, the IT market is seeing demand for those with expertise in finance and risk to create more sophisticated reporting solutions.”

A report from CEBR last year highlighted that up to 13,000 jobs are expected to be lost during 2013, with the average number of jobs down to 237,000 from a high of 354,000 in 2007.