2024-04-16 18:30:36
(Reuters) – Large U.S. banks continued to lay off employees in the first quarter, with Citigroup leading the numbers.
The number of employees at Citi declined in 2,000 after the bank completed a sweeping reorganization aimed at improving its profits and reducing layers of management.
Bank of America (NYSE:), Wells Fargo (NYSE:) and PNCFinancial together cut more than 2,000 jobs in the three months ended March 31 compared to the previous quarter.
Banks are under pressure to control costs due to the uncertain economic outlook. While investors still expect the Federal Reserve to tame inflation by avoiding a significant economic slowdown, expectations remain inconsistent regarding the potential for interest rate cuts later this year.
The layoffs at Citi were part of a total of 7,000 layoffs that will be reported in upcoming quarterly results as employees complete their notice periods, Citi Chief Financial Officer Mark Mason told reporters on Friday.
The mass layoffs are part of a broader goal of reducing Citi’s headcount by 20,000 over the next two years.
BofA’s headcount fell by more than 4,700 from the first quarter of 2023.
Across Wall Street, investment banks reported higher revenues, driven by a rebound in capital markets. Executives have become more optimistic that a surge in stock offerings will lift sentiment and spur mergers and acquisitions.
This would strengthen the outlook for Goldman Sachs (NYSE:) and Morgan Stanley (NYSE:), where headcount declined by 900 and 396, respectively.
In 2023, rival Goldman Sachs carried out its biggest round of layoffs since the 2008 global financial crisis.
JPMorgan (NYSE:) Chase, however, bucked the trend. The largest bank in the United States continued to strengthen its headcount, adding nearly 2,000 employees in the first quarter for a total of 311,921.
(Reportagem de Manya Saini and Niket Nishant in Bengaluru)
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