U.S. banking titans persisted in downsizing their workforce in the first quarter, with Citigroup (NYSE:C) witnessing the most significant reduction.
Citigroup’s headcount dwindled by 2,000 employees following a comprehensive reorganization aimed at enhancing profitability and streamlining management layers.
Bank of America (NYSE:BAC), Wells Fargo (NYSE:WFC), and PNC Financial Services (NYSE:PNC) collectively slashed over 2,000 jobs in the quarter ended March 31 compared to the previous quarter.
With the uncertain economic outlook, banks face pressure to manage costs. While investors anticipate the Federal Reserve’s measures to curb inflation without triggering a significant economic downturn, the possibility of interest-rate cuts later this year remains uncertain.
Citigroup’s layoffs are part of a larger plan to trim staffing by 20,000 over the next two years.
Despite challenges posed by the changing rate environment, investment banks across Wall Street recorded higher revenue, fueled by a resurgence in capital markets. Executives are optimistic that increased equity offerings will boost sentiment and drive mergers and acquisitions.
Goldman Sachs (NYSE:GS) and Morgan Stanley (NYSE:MS) witnessed a decline in headcount by 900 and 396, respectively. Nonetheless, Morgan Stanley’s finance chief Sharon Yeshaya noted that the investment bank is still making “opportunistic hires.”
In contrast, JPMorgan Chase (NYSE:JPM) bucked the trend by adding nearly 2,000 employees in the first quarter, bringing its total workforce to 311,921.
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