Wall Street will be taking it on the chin this holiday season.
Bonuses at banks, trading firms and other investment-related businesses in New York’s financial district will drop 16.5% from last year, hitting their lowest level since 2008, the New York Post notes.
Workers on Wall Street can expect to see an average bonus of $101,000 this year, down 50% from $191,360 in 2006, according to New York State’s comptroller. One market research firm says that 20% of Wall Street workers won’t see any bonus this year.
Falling bonuses come as a number of big banks trim their payrolls in order to cut costs. Last week, Citigroup (NYSE:C) said it will eliminate 11,000 workers worldwide. In October, UBS (NYSE:UBS) said it will cut 10,000 workers from its global operations, with its investment banking division taking the hardest cuts.
Wall Street bonuses, which totalled about $19.7 billion in 2011, fuel local businesses, including restaurants and luxury retailers. They also help fill city and state tax coffers.
On analyst said that declining bonuses were the result of additional regulations and rising costs, which were driving firms out of New York City.