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Monday 01st of December 2008
November 12, 2007

Credit squeeze will threaten broker jobs


by Kay Murchie
”Credit

The weak dollar and the credit crunch threatens many UK-based broker jobs analysts have warned. Employees at major international brokers are at the greatest risk of losing their jobs.

The announcement comes after Aon is to slash 2,700 jobs as part of its 3-year global restructuring programme, over 1,300 it originally anticipated.

Brokers with high dollar revenues are at the most risk in the UK as the high value of the pound meant staffing was more expensive in the UK according to analysts.

Research conducted by Plimsoll Publishing implies that 5,000 UK broker employees could lose their jobs as a result of the global credit crunch and the slowdown in the UK economy. David Pattison of Plimsoll said it is expected that key players will make considerable job cuts.

Analysts at Fitch Ratings said they did not believe that Aon’s job losses were as a result of the potential sub-prime losses. Fitch views Aon’s exposure to sub-prime losses as modest and does not believe that these actions are related to investment impairments.

In addition, Fitch Ratings added that it was unclear as to whether Marsh and Willis, Aon’s biggest rivals, will cut jobs.
Marsh declined to comment but a spokesperson for Willis said we are always reviewing our business model but currently have no need to restructure or have significant job cuts.

Aon employs around 43,000 people in its 500 offices in over 120 countries. It is the world’s second largest insurance brokerage.

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