Banks close the year with a wave of layoffs

While it’s common for banking around the world to cut jobs at the end of the year, the wave of layoffs is bigger than usual in 2022.

The reason is that bank executives are worried about corporate results in 2023 as inflation drives down operating costs and volatile markets cut back on revenue from core areas of banking. See also: Goldman Sachs: Revenue from cutting bonuses for executives despite revenue growth.

According to Reuters, the following major banks have announced or announced job cuts:

Barclays

Barclays cut its corporate and investment bank staff by less than 3%, a source told Reuters. This was preceded by a 45% cut in merger advisory fees. The British investment bank has performed well in recent quarters, especially in its fixed income business, but in the US it sold more securities than allowed, resulting in hundreds of millions of dollars in fines.

Citigroup

Citi has cut dozens of jobs in its investment banking division as the trade downturn continues to weigh on Wall Street’s biggest banks. The US Bank increased its income from loans as interest rates rose, but the aggressive actions of the Federal Reserve and other central banks have heightened fears of a recession that could hit banks’ loan portfolios.

Credit Suisse
Credit Suisse is accelerating cuts in operating costs announced just a few weeks ago as the bank struggles to cut them by about 2.5 billion Swiss francs. Credit Suisse has already said that it will lay off some of its employees, and this is likely to lead toaboutmore layoffs than announced, including in asset management. In addition, according to anonymous sources, it will reduce the private banking staff in Hong Kong by 5%.

Deutsche Bank
Deutsche Bank, Germany’s largest bank, cut staff in its creation and advisory department in October, mostly affecting junior bankers. He fired dozens of executives in New York and London.

Goldman Sachs
Goldman Sachs began its regular annual cuts in September. The Wall Street giant typically cuts its workforce by 1-5% each year, according to reports, and cuts in 2022 are likely to be in the lower end of that range.

HSBC
Under pressure from its largest shareholder, Chinese insurer Ping An, which is looking to boost profitability, HSBC chief executive Noel Quinn has accelerated plans in recent months to shrink its global empire and streamline management. Reuters reported that HSBC is laying off at least 200 senior executives as it cuts the ranks of chief operating officers in a number of countries and business sectors.

The bank also announced that it was selling its Canadian business for $10 billion, cutting roughly 4,000 employees from its payroll in one move. It also announced the sale of its much smaller New Zealand unit and the closing of 114 more UK branches, leaving it with about a third of the number of stores it had back in 2016.

Morgan Stanley
Morgan Stanley is making modest job cuts around the world, Chief Executive James Gorman told Reuters NEXT, without giving figures.

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