Job cuts will not necessarily mean recovery

It has recently been claimed that many of the financial companies, banks, and insurance firms that have been slashing jobs over recent months will not find that this necessarily puts them on course for a speedier recovery from the financial crisis.

In fact, some officials have said that getting rid of core employees, as they have been, could actually be hindering their chances of recovery, as cutting the jobs of skilled workers that provide the essential services to the company could jeopardise their future.

The warning came from the union, Unite, which claims that finance firms have cut around twenty thousand jobs in the first four months of this year, often in a bid to save money in the current financial climate.

Whilst this may save them money over the short term it means that over the long term they will be losing skilled and experienced staff, and replacing them at a later date will entail investment in further training, which will mean higher costs.

An official from Unite said: “Confidence in the sector can only be regained through the efforts of the vital staff in branches, processing and call centres up and down the country. We are infuriated that banks and insurance companies are failing to recognise the damage that will be done to their businesses if they continue to simply slash thousands of staff each month.”

He added: “Nearly 20,000 job losses in the last four months represents a significant loss in the sector. The financial services industry must ensure that it protects its workforce in order to stand a chance of emerging from the current crisis. Without these highly trained and experienced people there is no chance that the UK will be able to rebuild its reputation for a world class industry.”

Tags: core employees, industry, Business Finance, United States, bid, job cuts