Wall Street Could Cut 10,000 Jobs Next Year

Those keeping their jobs will on average make six times the private sector's average salary

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Over 4,000 people lost their well-compensated securities job between April and August, according to Dealbook. A report by New York State Comptroller Thomas DiNapoli says that "an additional 10,000 jobs could be cut by the end of the next year, bringing the total losses on Wall Street to 32,000 since 2008." Napoli released a statement on Tuesday saying, "It now seems likely that profits will fall sharply, job losses will continue, and bonuses will be smaller than last year." Banks like Goldman Sachs and Bank of America, are scheduled to report third quarter earnings in the coming days, and Dealbook reports that they "have announced major job cuts in anticipation of weaker profits." Businessweek reports that Bank of America's CEO announced in September that the company planned "around 30,000 [job cuts] in the next few years." But Occupy Wall Streeters shouldn't be so quick with the schadenfreude, as the cuts will affect city revenue. "The downturn will likely have an immediate impact on the city's coffers ... tax receipts from securities industry-related companies will total nearly $2.6 billion in 2011...roughly 7 percent of the City’s overall tax revenues – well below the pre-recession level of 13 percent. Worse could be in store for 2011," writes Dealbook's Mark Scott. There is a bright side--for those who remain on Wall Street. Scott writes:

For those able to hold onto their jobs, Wall Street remains a lucrative place. Compensation at NYSE member firms totaled $37.2 billion for the first half of 2011, an almost 19 percent jump from the previous year.

The industry’s salaries also continue to outstrip other sectors. DiNapoli said the average pay   packet in New York City grew by 16.1 percent to $361,330 in 2010. That is almost 6 times greater than the average salary for the rest of the private sector.

This article is from the archive of our partner The Wire.