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Banks Are Cutting 75,700 Jobs Worldwide

Banks worldwide have announced major job cuts this year. Globally, 75,700 jobs are reportedly being eliminated, with the most recent announcement coming from Italy’s largest bank. Unicredit has become the latest major bank to unveil layoff plans, joining Deutsche Bank, Santander, Commerzbank, HSBC, and more. The negative interest rate environment and slowing economies have forced banks to cut costs and lay off employees.

Also read: Swiss Licensed Crypto Bank Expanding Into 9 Markets

Unicredit Eliminating 8000 Jobs

Italy’s largest bank, Unicredit, unveiled its new business plan to 2023 on Tuesday, which reportedly includes laying off 8,000 employees and closing 500 branches. CEO Jean Pierre Mustier claims that this round of job cuts will help eliminate 1 billion euros ($1.11 billion) of the bank’s gross expenses.

Unicredit also announced a separate buyback of 2 billion euros ($2.2 billion), Bloomberg detailed, noting that the job cuts equal to more than 9% of the bank’s workforce. The bank, however, said it intends to spend 9.4 billion euros on information technology and human resources over the next four years to update its technology and improve compliance.

Banks Are Cutting 75,700 Jobs Worldwide
Unicredit’s worldwide presence. Source: Unicredit

The bank currently has 12,000 branches in over 50 countries and 30 representative offices around the world, according to its website. It provides products and services to approximately 26 million customers in areas of corporate investment banking, commercial banking and wealth management. Its 14 core markets are Italy, Germany, Austria, Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Hungary, Romania, Russia, Serbia, Slovakia, Slovenia, and Turkey.

Two Italian banking unions told Reuters on Tuesday that they expect the actual number of job cuts to be around 5,500 instead of the 8,000 announced. They also expect 450 branches to close instead of the planned 500 branches.

Banks Cutting Over 75,700 Jobs Worldwide

The job cut announcement by Unicredit brings the total number of layoffs announced by banks globally this year to 75,700, according to Bloomberg. 83% of these banks are in Europe where negative interest rates and slowing economies have forced financial institutions to cut costs. In September, reported that the number of announced job cuts totaled over 60,000.

Banks Are Cutting 75,700 Jobs Worldwide
Global layoff breakdown. This chart is an updated version of the one included in our previous bank layoff coverage. Source: company filings and Bloomberg.

Overall, banks in Europe have announced job cuts of 63,036, representing more than 10 times the total number announced by banks in North America, the news outlet conveyed. In Europe, banks in Germany top the list of major job cuts. Deutsche Bank leads the pack with a plan to lay off 18,000 employees through 2022 as it scales down its investment banking business. Besides cutting jobs, banks in Germany are passing on the burden of negative interest rates to their clients. A recent survey by the German central bank, the Deutsche Bundesbank, shows that 58% of banks surveyed are already doing so. Some are charging all savers negative interest rates while others only target wealthy and corporate clients.

According to data compiled by Bloomberg, other banks with major layoff plans include Banco Santander which is cutting 5,400 jobs, Commerzbank 4,300 jobs, HSBC 4,000 jobs, Barclays 3,000 jobs, Alfa Bank 3,000 jobs, KBC 2,100 jobs, Societe Generale 2,100 jobs, and Caixabank 2,000 jobs. HSBC may actually be laying off more workers as the company said in October that it may cut up to 10,000 jobs.

What do you think of big banks cutting costs by laying off workers? Let us know in the comments section below.

Images courtesy of Shutterstock and Bloomberg.

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banks, Bitcoin, crypto, Cryptocurrency, Deutsche Bank, Digital Currency, german banks, Germany, job cuts, layoffs, Negative Interest Rates, UniCredit, Virtual Currency
Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

Kevin Helms , 2019-12-04 14:30:51 ,

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.

While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock

Nick Chong , 2019-11-10 12:00:38

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