NEW YORK — Manufacturers Hanover Corp. will lay off about 2,500 employees by the end of March, 1988, the biggest staff cut in the banking business since the October stock market crash, company sources said Monday.
The sources said Manufacturers Hanover President John McGillicudy had discussed the cutbacks, equal to 9% of its work force, with senior officers at the regular monthly meeting last week.
A spokesman for the New York-based bank would neither confirm nor deny the layoffs.
While the planned layoffs by Manufacturers Hanover are the biggest of any U.S. bank, other major banks, including Citicorp and Chemical New York, also have been trying to reduce expenses as loan volume stagnates, investment banking revenues slow and problems with Third World loans increase.
Many Departments Affected
Manufacturers Hanover, whose earnings have been lackluster for the past five quarters, already cut its staff by 2,900 between January, 1986, and September, 1987.