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1043 financial services jobs could be cut, says Plimsoll Analysis

Up to 1043 jobs in the UK financial services sector could be lost as the industry consolidates over the next 12 months, according to the 2008 Plimsoll Analysis.

The report analysed the UK’s leading 1356 companies, assessing each company’s chances of survival.

The results show that three quarters of the firms analysed will need to reduce their head count and 9 per cent of the companies surveyed are already running at a loss.

Plimsoll says companies need to aim for at least £70,000 sales per employee in order to stay competitive.

The analysis shows that of the 1356 firms individually assessed 164 were rated as “danger”, meaning they need to consolidate immediately. The firms are losing money, are heavily in debt and are exposed to their lenders.

Plimsoll says some of those firms could see 30 per cent of their workforce go as they try to stay in the market.

Senior analyst David Pattison says: “The 165 companies we have identified as in danger need to act now if they are to survive. It very important they review their entire business cost base and take action now to significantly reduce their outgoings.

“Whilst job losses are undoubtedly bad news for any company, such decisive action may be called for to guarantee the ultimate survival of the business – even if this means the business is 30 or 50 per cent smaller than it was.”

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