The world’s largest banks have laid off more than 60 thousand employees in 2023 – Kommersant

According to estimates Financial Times, The 20 largest banks in the world have laid off 61.9 thousand employees this year. As the publication notes, this year has become one of the most difficult for employees of the banking sector since the global financial crisis of 2007–2008. Then banks had to lay off more than 140 thousand people.

UBS Group has cut the most employees this year due to the acquisition of Credit Suisse and subsequent business restructuring. As a result, 13 thousand employees have already lost their jobs, and next year the company plans to continue cutting staff. In second place was Wells Fargo, which announced in December its intention to lay off 12 thousand employees. In third place is Citigroup with 5 thousand layoff workers.

Investment banks were hit by a sharp decline in fees for the second year in a row due to a decline in IPOs and mergers and acquisitions. “As a result, Wall Street is trying to protect its profit margins by cutting headcount,” writes the Financial Times.

Previously agency Reuters reported that for the same reasons, European bankers expect a reduction in bonuses this year. Since the beginning of the year, mergers and acquisitions (M&A) deals totaling $2.67 trillion have been concluded worldwide, a record low since 2005, according to research firm Dealogic. As for the EMEA region (Europe, Middle East and Africa), the volume of M&A there since the beginning of the year amounted to only $616 billion – the minimum since 2004.

Similar situation in the USA: last month The Wall Street Journal citing a study by the consulting firm Johnson Associates reported that by the end of the year, bonuses for American investment bankers will be reduced by approximately 15-25% compared to last year. Also, most likely, bonuses for employees of retail and commercial banks will decrease – by about 10-20%.

Kirill Sarkhanyants