Breaking News
Get 40% Off 0
Is NVDA a 🟢 buy or 🔴 sell? Unlock Now

Factbox-Global banks take axe to jobs as cost pressures mount

Published Dec 02, 2022 07:13AM ET Updated Dec 02, 2022 11:41AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The logo for Citibank is seen on the trading floor at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., August 3, 2021. REUTERS/Andrew Kelly/File Photo
 
GS
+0.22%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
BARC
+0.04%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DBKGn
+1.13%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
MS
+0.84%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

LONDON (Reuters) - Banks typically trim jobs towards the end of the year, but 2022 has seen a bigger wave of redundancies and layoffs.

Rising cost pressures as a result of inflation and shrinking revenues in many core business lines amid volatile markets are making bank bosses nervous about profitability in 2023.

The following major banks have announced or been reported to be making job cuts:

BARCLAYS

Barclays (LON:BARC) cut its workforce in corporate and investment banking by under 3%, a source told Reuters on Nov.8, weeks after reporting a 45% slump in merger advisory fees.

The British investment bank has performed well in recent quarters, in fixed income trading especially, but a blunder in the U.S. that saw it sell more securities than permitted has cost it hundreds of millions of dollars in penalties.

CITIGROUP

Citi eliminated dozens of jobs across its investment banking division, as a dealmaking slump continues to weigh on Wall Street's biggest banks, Bloomberg News reported on Nov.8.

The U.S. lender has like its peers boosted its lending income as interest rates rise, but the aggressive action by the Federal Reserve and other central banks has sparked fears of a downturn that could hit banks' loan books in time.

CREDIT SUISSE

Credit Suisse is accelerating cost cuts announced just weeks ago, Chairman Axel Lehmann said on Dec. 2, confirming a Reuters report, as the bank races to slash its cost base by around 2.5 billion Swiss francs ($2.68 billion).

Credit Suisse had already said it would lay off some staff. The cost savings reported this month are likely to involve more job cuts than previously announced for the first wave of reductions, including in its wealth business, Reuters reported.

The bank is cutting about 5% of its private banking headcount in Hong Kong, two sources said.

DEUTSCHE BANK

Deutsche Bank (ETR:DBKGn), Germany's largest bank, cut staff in its investment bank's origination and advisory teams in October, in a move than affected mostly junior bankers.

The cuts included dozens of staff in New York and London, Reuters reported.

GOLDMAN SACHS

Goldman Sachs (NYSE:GS) restarted its annual practice of cutting jobs this year, after pausing in the pandemic.

The Wall Street giant began axing several hundred jobs starting in September.

Goldman typically trims about 1% to 5% of its staff each year, and the 2022 cuts will likely be in the lower end of that range, a source told Reuters.

HSBC

Under pressure from his biggest shareholder, China's Ping An Insurance Group, to improve profit HSBC Chief Executive Noel Quinn has in recent months accelerated plans to shrink its global empire and streamline its management.

Reuters reported HSBC is shedding at least 200 senior managers, as it prunes the ranks of Chief Operating Officers it has across an array of country and business lines.

The bank also announced it is selling its Canadian business for $10 billion, removing around 4,000 employees from its wage bill at a stroke. It also announced on Nov. 30 the sale of its much smaller New Zealand business, and the closure of a further 114 branches in Britain, leaving it with around a third of the number of outlets it had as recently as 2016.

MORGAN STANLEY

Morgan Stanley (NYSE:MS) is making modest job cuts worldwide, Chief Executive James Gorman said at the Reuters NEXT conference on Dec.1, without giving numbers.

Reuters had on Nov. 3 reported layoffs were coming, with dealmakers in its Hong Kong and mainland China businesses among those affected, as strict Chinese lockdown rules weighed on activity. Sources said the cuts would go beyond usual attrition.

($1 = 0.9337 Swiss francs)

 

 

Factbox-Global banks take axe to jobs as cost pressures mount
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email