What’s going on:
Major U.S. banks, including Citigroup, Goldman Sachs, and Morgan Stanley, are set to cut over 11,000 jobs before the end of this year, according to Financial Times. Additionally, Bank of America has plans to reduce 4,000 positions through attrition. JP Morgan has not yet announced any large-scale layoffs.
Why it matters:
It’s reported that the top five banks that dominate Wall Street – JP Morgan, Bank of America, Morgan Stanley, Goldman Sachs, and Citi – had hired more than 100,000 people in the past three years combined, as the economy recovered from the COVID-19 pandemic, according to Finews.com. Banks appear to be reassessing their workforce needs and potentially shift towards automation or outsourcing for certain business tasks, which will leave thousands more workers on the hunt for a new job in an already strained market.
How it’ll impact the future:
The job cuts could lead to a more competitive job market in the banking sector, with fewer available positions and increased pressure on employees to perform. This may also prompt banks to invest more in technology and automation, reducing the need for human labor in certain areas.
As banks reevaluate their workforce needs, laid off employees may need to transition to different roles within the industry. The job cuts in the banking sector could have a ripple effect on other industries, as laid-off workers may also seek employment elsewhere. This may lead to increased competition for jobs in other sectors and potentially drive down wages or benefits as employers have a larger pool of candidates to choose from.