Major U.S. banks will lay off more than 11,000 staff in 2023 as Wall Street faces its worst hiring market since the financial crisis that followed the pandemic influx of staff. On this subject writing The Financial Times.
Citigroup Corporation this week announced plans to cut 5,000 employees by the end of the second quarter of 2023, mostly in investment banking and trading. Goldman Sachs, which cut about 6% of its workforce in January, plans to lay off about 250 more chief executives. Morgan Stanley going cut about 3.2 thousand people, or 5% of the staff.
During the coronavirus pandemic, remote work has interfered with traditional ways of doing business. Since the end of the pandemic, banks have significantly increased the number of their employees to cope with the transaction boom. Now, with budget cuts, bank leaders are trying to reduce this flow.
“This is probably one of the toughest job markets since the 2008 financial crisis,” Max Chemnitzer, managing director of banking and financial services at Michael Page in New York, told the newspaper.
In March, Wall Street’s five largest banks – JPMorgan Chase, Bank of America, Morgan Stanley and Citi – collectively had a record 882,000 employees worldwide.
Hiring was “crazy” in 2022, said Jean Brantover, hiring manager at DHR Global. Companies have hired the best to stay competitive, but the trend has changed. Managers are now being told there must be a “very specific reason” to hire. Even firing an employee doesn’t mean they’ll be allowed to look for a replacement, Brantover explained.
Staffing firm Options Group boss Mike Karp said recruitment on Wall Street has already slowed due to trading volume. Today, in addition to the regional banking crisis and issues related to the US national debt ceiling, hiring plans are affected by the threat of higher capital requirements.
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