While tech layoffs may get more headlines, US banks are laying off tens of thousands of workers in 2023.
According to CNBC, five of the top banks in the US have laid off a combined 20,000 employees. In fact, the only bank that has yet to announce mass layoffs is the biggest, JPMorgan Chase.
Economic uncertainty and a slowing lending market — as a result of higher rates — have contributed to the situation.
“Banks are cutting costs where they can because things are really uncertain next year,” Chris Marinac, Janney Montgomery Scott research director, told the outlet.
“They need to find levers to keep earnings from falling further and to free up money for provisions as more loans go bad,” he added. “By the time we roll into January, you’ll hear a lot of companies talking about this.”
Despite the number of jobs that have already been cut, at least some bank execs are warning that more cuts are yet to come.
“We still have additional opportunities to reduce headcount,” Wells Fargo CFO Mike Santomassimo told analysts. “Attrition has remained low, which will likely result in additional severance expense for actions in 2024.”