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Sixty face axe in new Fitch cuts
Gideon Spanier, Evening Standard25.06.08
Corporate credit rating agency Fitch is axing another 60 jobs worldwide as a result of the subprime crisis and the collapse in structured finance.
The majority of the job cuts are likely to be made in New York although as many as 20 staff could be leaving the London office, the Evening Standard learned today.
A spokesman for Fitch, which is jointly headquartered in London and New York, declined to comment. Bosses began telling staff yesterday. This week's cull is the second wave of job cuts at Fitch in three months.
At least 120 posts are thought to have been lost since March. More jobs could go as French financial services group Fimalac, the majority owner of Fitch, has signalled it may axe up to 8%-10% of staff in the 2100-strong global firm.
Ratings agencies such as Fitch, which earn their fees by assessing the creditworthiness of tens of thousands of structured finance products, have been heavily criticised for failing to spot the risks in US mortgage-backed securities.
