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Banks axe 60,000 jobs in one of worst years for cuts since financial crisis

via Bloomberg Television on Youtube
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Global banks cut over 60,000 jobs in 2023, largely due to plummeting fees in investment banking and the UBS takeover of Credit Suisse, resulting in at least 13,000 job losses.

Wall Street banks, including UBS, Wells Fargo, Citigroup, and others, reduced headcounts.

The reductions were driven by declining revenues and a need to protect profit margins. (Trending: Democrat Targets U.S. Troops With New Gun Control Law)

Lee Thacker, owner of financial services headhunting firm Silvermine Partners, said, “There is no stability, no investment, no growth in most banks — and there are likely to be more job cuts.”

“There are some very nice gifts being sent to bosses at the moment,” added Thacker. 

“The revenues aren’t there, so this is partly a response to overexpansion. But there is also a simpler explanation: political cost-cutting,” explained Thacker. 

“If you run a division and your boss asks for savings, you cut or you get fired,” he continued.

The trend is expected to continue in 2024, with banks becoming more conservative amid a lack of significant improvement in investment banking activity.

Gaurav Arora, global head of competitor analytics at Coalition, said, “Some banks are hesitating at the moment because of the amount of dry powder sitting on the sidelines, especially in the Americas.”

“We expect full-year 2024 to be a continuation of the story of 2023,” said Arora.

“We see banks getting more conservative,” added the analyst.

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