Big banks led by Citi continue layoffs amid pressure to cut costs
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US banking giants, including Citigroup, Bank of America, Wells Fargo, and PNC Financial, have continued to lay off employees in the first quarter of 2024. Citigroup saw the biggest drop, with a decline of 2,000 employees after completing a reorganization aimed at improving profits and reducing management layers. The layoffs were part of a broader goal to reduce Citi's staffing by 20,000 over the next two years. Bank of America's headcount has fallen by more than 4,700 since the first quarter of 2023. However, JPMorgan Chase went against the trend and added nearly 2,000 employees in the first quarter. The layoffs are driven by pressure to control costs due to the uncertain economic outlook and the need to navigate the changing rate environment. Higher funding costs, contracting net interest margins, and uneven trading results are likely to keep banks cautious. Investment banks, on the other hand, have brought in higher revenue, fueled by a revival in capital markets. Goldman Sachs and Morgan Stanley saw reductions in headcount, but executives are optimistic that a surge in equity offerings will lift sentiment and spur mergers and acquisitions.

#Banking #Layoffs #Costcutting #EconomicOutlook

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