The Layoff Wave Sweeping Wall Street... Canter Fitzgerald Begins Restructuring

[Image source=AP Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] Concerns about a wave of layoffs on Wall Street are growing as Cantor Fitzgerald, one of the major investment firms on Wall Street, is reportedly planning to reduce about 5% of its total workforce through restructuring amid fears of an economic recession caused by the COVID-19 pandemic. Major investment firms such as Morgan Stanley and Goldman Sachs have reportedly reassured their employees by stating that there will be no layoffs due to the COVID-19 situation.

On the 17th (local time), Bloomberg News reported that Cantor Fitzgerald, one of the large investment firms on Wall Street, is conducting restructuring involving hundreds of employees to cut costs in response to the economic downturn triggered by COVID-19. Citing sources within Cantor Fitzgerald, Bloomberg reported, "Hundreds of layoffs will occur across several departments, accounting for less than 5% of the total workforce." Cantor Fitzgerald is known to have about 12,000 employees.

Bloomberg also reported that some layoffs have already taken place and more are planned in the coming weeks. According to Bloomberg, senior managers in several departments at Cantor Fitzgerald were instructed to identify employees to be laid off first, and in some cases, were ordered to increase the number.

As concerns about layoffs grow among employees of other Wall Street investment firms, each investment bank is denying any layoff plans to calm employee unrest. Bloomberg reported that major Wall Street investment banks such as Morgan Stanley, Goldman Sachs, and Citigroup have assured employees that the economy will recover in a few months and that there are no plans for layoffs due to COVID-19.

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