UK banks may cut 15,000 jobs in Q1

UK banks, insurers and financial-services companies may cut as many as 15,000 jobs in the first quarter to reduce costs amid a decline in business confidence, the Confederation of British Industry said.

"We expect an intensification of job cuts going forward," CBI Chief Economic Advisor Ian McCafferty told reporters in London, citing a new survey of financial companies. "Sharp falls in activity and profitability in the fourth quarter illustrate the profound troubles of the financial sector."

Revenue and profitability in the financial-services industry fell at a record rate in the October to December period, as about 10,000 jobs were lost and business confidence declined, the CBI said. The Bank of England has slashed its key interest rate to the lowest since it was formed in 1694 to prevent a recession from deepening amid the global financial crisis.