Bank of America cuts team in Dubai by 40%

Latest in series of cutbacks by global lenders in emirate amid dearth of deals
Bank of America cuts team in Dubai by 40%
BOA plans to cut 30,000 jobs over the next few years
By Bloomberg
Wed 16 Nov 2011 03:02 PM

Bank
of America, the second-biggest US lender by deposits, cut part of its
top-ranked Merrill Lynch & Co equities division in Europe and reduced its
sales and trading team in Dubai by 40 percent, people with knowledge the
situation said.

The
cuts in Europe yesterday affected specialist sales and generalist sales, said
two people, who declined to be identified because the information isn’t public.

They
didn’t provide a number of positions affected. In Dubai, the bank reduced the
group to six from 10, according to another person.

Chief
executive officer Brian T. Moynihan plans to eliminate 30,000 jobs at the North
Carolina-based lender over the next few years to reduce costs by $5bn annually
by the end of 2013.

Wall
Street firms including Barclays Capital and Credit Suisse Group AG have reduced
staff as revenue from trading stocks and bonds has declined.

Spokesmen
for Bank of America in London weren’t immediately available to comment.

The company is one of a number of global lenders to have
trimmed back their workforces in Dubai in recent months. International lenders
Deutsche Bank and Credit Agricole are understood to have withdrawn employees
from Dubai as deals dry up, revenue falls and lenders curb costs.

HSBC, Europe’s biggest bank, said last month it would stop
offering brokerage services to retail investors in the United Arab Emirates.

For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.

Subscribe to our Newsletter

Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.