The major global banks cut their staff by more than 60,000 during the year, making 2023 one of the most redundant fiscal years in the sector since the great global financial crisis, according to data compiled by the Financial Times.
According to the reference newspaper in the City, some 20 of the world’s largest banks will cut at least 61,905 jobs by 2023, down from the more than 140,000 jobs cut by the same lenders during the 2007-08 global financial crisis, but still one of the biggest job adjustments in the sector.
In previous years with large job losses in banking, such as 2015 and 2019, the paper notes that these largely responded to cuts between European institutions in response to historically low interest rates, but in 2023 about half of the accounting adjustment came from Wall Street lenders.
In this sense, investment banks suffered for the second year in a row a fall in their commissions due to the fall in public agreements and quotes, which led Wall Street to try to protect profit margins by cutting staff, in addition to the impact related to the acquisition of Credit Suisse by UBS, which has so far resulted in at least 13,000 fewer jobs.
Also, in many cases, lenders are reversing post-pandemic hiring, when repressed demand for transactions sparked a talent war among investment banks.
K. Tovar
With information from international media
(Reference image source: Louis Droege, Unsplash)
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