Citigroup has started their purging of manager jobs as they start the reorganization. Now The Guardian is reporting that Lloyds is looking to shed 2,500 jobs in their own shakeup.
Job cuts beget job cuts. Banks and financial institutions tend to march to the same drum when they hire (the competition for deals is intense) and also when they get over their skis with too many hires.
Major U.S. banks have been quietly downsizing their workforces throughout this year, despite the economy’s unexpected resilience, and some of the most significant layoffs are yet to come. JPMorgan Chase stands out as an exception among the largest banks, as it has not announced any layoffs and has even expanded its workforce. However, the next five largest U.S. banks have collectively cut around 20,000 jobs in 2023. These job reductions have been driven by various factors, including the impact of higher interest rates on the mortgage business, reduced Wall Street deal-making, and higher funding costs.
Wells Fargo and Goldman Sachs have made significant reductions in their workforces, with each cutting about 5% of their employees this year. While Goldman Sachs has already gone through several rounds of cuts.