Zhitong Finance noted that according to the data compiled by the company's disclosure and reports, the world's 20 largest banks will lay off at least 61,905 employees in 2023 as banks try to protect profit margins during the drought period of deal matchmaking and debt and equity**. The total number of layoffs does not include smaller banks or minor layoffs.
It was the year of the largest layoffs since the 2007-08 financial crisis, when 140,000 people lost their jobs. While the stagnation of trading was a major factor, UBS (UBSUS) has resulted in at least 13,000 jobs being eliminated, with more layoffs expected in 2024.
Previous years, such as 2015 and 2019, saw large number of layoffs, largely as a result of European banks struggling to cope with a low interest rate environment. However, at least half of the layoffs in 2023 will come from Wall Street banks in response to the aggressive path of interest rate hikes by the US and European Central Banks.
Citigroup (C. Brown)US) laid off 5,000 people;Morgan Stanley, MsUS) laid off 4,800 jobs, and Bank of America (BACUS) laid off 4,000 people;JPMorgan Chase & Co. (JPM.)US) laid off 1,000 employees. All told, big Wall Street banks are laying off at least 30,000 jobs in 2023.