Job cuts are sweeping through the banking industry as ten major banks take drastic measures to cope with economic pressures. These layoffs reflect a harsh reality: rising interest rates, overstaffing issues, and a notable slowdown in Wall Street deal-making are forcing banks to streamline operations.
Wells Fargo is cutting approximately 5% of its workforce, a move that continues its strategic shift away from the mortgage business. Similarly, Bank of America is trimming its staff by around 5% as higher interest rates weigh down its mortgage operations. These cuts highlight how banks are grappling with the impacts of a challenging financial environment.
Goldman Sachs has not been spared either, slashing its workforce by about 5%. This significant reduction underscores the challenges facing investment banks as deal-making slows down. JPMorgan Chase, despite being the largest and most profitable bank in the U.S., is also making cuts, though it has implemented fewer layoffs compared to its competitors.
Barclays is announcing hundreds of layoffs within its investment banking division, particularly affecting its deal-making unit. UBS, following its acquisition of Credit Suisse, is planning multiple waves of layoffs throughout 2024, reflecting the need for operational efficiency in the aftermath of a major merger.
BNP Paribas is also making cuts, earmarking 50 redundancies across its U.K. business. Deutsche Bank has taken similar steps, although it has not disclosed specific numbers related to its layoffs. Morgan Stanley previously eliminated around 3,500 roles in June of last year, signaling ongoing shifts within the firm.
Citigroup plans to cut a staggering 20,000 jobs, roughly 10% of its workforce, as part of a broader restructuring effort aimed at tackling future uncertainties.
These layoffs signal a troubling trend in the banking sector, highlighting a looming crisis fueled by economic uncertainty.
Sources:
- Citigroup: CNBC
- Wells Fargo: Barron’s
- Goldman Sachs: eFinancialCareers
- Bank of America: CNBC
- JPMorgan Chase: TechCrunch
- Barclays: Financial Times
- UBS: Reuters
- BNP Paribas: Reuters
- Deutsche Bank: Bloomberg
- Morgan Stanley: Bloomberg
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