RJ and Makay

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Workman Securities Corp., an Eden Prairie Minnesota broker-dealer, told its 100 reps and advisors last Wednesday that the firm would be closing in November. Then the company informed the brokers that they could move, as a group, to Allied Beacon Partners, Inc., a Richmond Virginia based firm. Brokers who agree to switch to Allied Beacon were promised a smooth transition, and the new firm would keep Workman’s payout schedule for two years, an anonymous rep said.

Things have been looking up economically, but the road to recovery continues to be bumpy. In the face of slower revenue growth, increased regulation, and debt problems, many financial services firms are finding a need to cut costs. And, unfortunately, that means layoffs.

Among the companies that are expected to announce layoffs or have already done so are Wells Fargo, American Express, PNC, Fifth Third Bancorp, Synovus Financial, and State Street. In all cases, job cuts are expected to be in the hundreds or even thousands, resulting in expense reductions of tens to hundreds of millions of dollars. The goal, say analysts, is to reduce operating costs by as much as 20% over the next three years.