Banks Cut 5,000 Jobs in Q1 Amid Uncertain Economic Climate

The largest U.S. banks cut a total of more than 5,000 jobs during the first quarter.

They did so to control costs during an uncertain economic climate in which investors are unsure if the Federal Reserve will cut interest rates later this year, Reuters reported Tuesday (April 16).

Citigroup made the biggest reduction, eliminating some 2,000 jobs during the quarter, according to the report. 

Bank of America, Wells Fargo and PNC Financial cut a combined total of 2,000 jobs. Goldman Sachs reduced its headcount by 900, while Morgan Stanley laid off 396 employees, the report said.

Going against this trend, JPMorgan Chase added more than 2,000 employees during the first quarter, per the report.

The cuts at Citigroup followed that bank’s reorganization, in which it aimed to improve profits and reduce management layers, according to the report. Overall, Citigroup has eliminated 7,000 positions and plans to cut a total of 20,000 jobs within the next two years. 

Citi announced in September that it was embarking on a major restructuring of its organization that eliminates a number of management layers. The bank said the new structure would elevate the leaders of its five businesses while also doing away with a number of positions.

“I am determined that our bank will deliver to our full potential, and we’re making bold decisions to meet our commitments to all our stakeholders,” Citi CEO Jane Fraser said at the time.

The reductions at Bank of America were achieved by not filling positions when employees leave, Reuters’ Tuesday report said. Over the past year, since the first quarter of 2023, the bank has allowed its headcount to fall by more than 4,700.

The latest cuts at Goldman Sachs came after a year — 2023 — in which it made more layoffs than at any time since 2008, at the beginning of the global financial crisis, the report said.

The reductions at Goldman Sachs were due to a slowdown in investment bank deal-making on Wall Street. At the time a third round of cuts was announced in May, the fees brought in by investment bankers were 26% lower than they were a year earlier.