Bank of America Reduce Workforces, JPMorgan Bucks the Trend

In their fourth-quarter earnings reports, Wells Fargo, Bank of America, and Citigroup disclosed a combined reduction of 17,700 employees in 2023. 

The banking giants attributed the layoffs to a slowdown in dealmaking and softened borrower demand amid economic uncertainty.

JPMorgan Chase Boosts Ranks Despite Industry Challenges:

JPMorgan Chase, the largest U.S. lender, increased its workforce for the third consecutive year, adding more than 16,200 employees in 2023. The bank’s decision to bolster its ranks defies the trend in other major financial institutions.

Challenging conditions, including weakness in commercial real estate and proposed capital rules, are expected to persist in 2024. Banks face pressure to pull back on lending activities. 

The banking sector experienced difficulties in 2023 as economic uncertainty weighed on dealmaking, leading to layoffs and workforce reductions.

Citigroup Announces Plans for Further Job Cuts:

Citigroup reported a reduction of 1,000 employees in 2023, bringing its total headcount to 239,000. The bank also outlined plans to cut 20,000 jobs over the next two years as part of a comprehensive reorganization and other business changes.

Bank of America and Wells Fargo witnessed workforce contractions of approximately 2% and 5%, respectively, in 2023. The decline in dealmaking and softer borrower demand prompted these banks to reduce employee numbers.

Goldman Sachs and Morgan Stanley Set to Disclose Headcount Figures:

Goldman Sachs and Morgan Stanley will disclose their latest headcount figures in the upcoming week. As of September 2023, both banks had already cut over 4,300 jobs compared to the previous year. 

Goldman Sachs underwent significant layoffs earlier in 2023 but indicated a potential for “selective investments” in headcount later in the year.