Massive Banks Have Now Cut a Whopping 62K Positions

January 3, 2024

Massive banks have now cut a whopping 62K positions according to the latest reports from Financial Times and Banking Dive.

20 of the world’s largest banks shed at least 61,905 jobs total in 2023, the Financial Times found last week, citing company disclosures and a tally of the outlet’s own reporting of large-scale reductions.

“There is no stability, no investment, no growth in most banks — and there are likely to be more job cuts,” Lee Thacker, owner of Silvermine Partners, a financial services headhunting firm, told the outlet.

Among the banks measured, UBS — perhaps unsurprisingly — made the deepest cuts: 13,000.

The Swiss government persuaded the bank to take over its flagging rival, Credit Suisse, in March.

Credit Suisse, by its own count, had already said it expected to cut 9,000 jobs in a wide-scale restructuring.

For his part, UBS Chair Colm Kelleher has said 2024 would be “the first year we don’t have the cover of the ‘easy’ costs,” a label he applies to headcount math.

Not far behind UBS among staff cuts in 2023, however, was Wells Fargo, at 12,000, the Financial Times reported.

The bank reportedly cut 7,000 jobs in the third quarter alone and spent $186 million on severance costs in that three-month span, according to the outlet.

But Wells appears headed for a far deeper cull, having set aside between $750 million and $1 billion in the quarter that just ended for “unanticipated” severance costs, CEO Charlie Scharf said last month.

“We have seen turnover come down,” Scharf said at Goldman Sachs’ U.S. Financial Services Conference.

“Unfortunately, we’re going to have to be more aggressive about our own internal actions.”

Also Read: Wells Fargo Now Warns of Massive Layoffs For 2024

Other Banking News Today

Several customers now report missing money from a giant US bank and are looking for compensation following continued troubles.

A Bank of America customer posted a tweet on X, formerly known as Twitter, and said the bank refused to talk to him due to “extenuating circumstances.”

“There’s a Bank of America issue where Zelle transfers after 1/9 aren’t being reflected in the balances of your bank account,” said the user.

“I almost lost my mind when I saw $2,000 was missing from my account. CALL ME!!!” he pleaded.

However, this experience was not an isolated incident, as other customers shared their frustrations under the social media post.

“I am going through this too!” said a user.

“They need to compensate us for this inconvenience,” said another user.

“You know how embarrassed I felt when I paid in-store and it said payment declined, and I know my account had money. Am still upset.”

The user who first tweeted about this incident offered advice to those interacting with his post.

“If you have Bank of America, go into the app, go to the Zelle transfers, and then go into your activity,” he said.

“Start screenshotting the transactions that are missing, the confirmation numbers, and the amounts so you have a record of the transaction.”

“If this is a hack issue and Bank of America is being honest then you just have a few screenshots,” he continued.

“If Bank of America is stealing, then you have your proof when it’s time to sue. There are no records of the Zelle transfers except for in the Zelle activity, not your bank activity.”

The-Sun reports that Bank of America eventually solved the problem.

Zelle, the platform used by major banks to transfer money to other people, said the problem was with Bank of America and not them, reports NPR.

“Transactions on the Zelle Network outside of Bank of America are not impacted,” a company representative said.

Other Zelle representatives responded to angry customers directly.

“The Zelle App & Network are up & running. We are aware of an issue that is impacting Bank Of America customers when sending & receiving payments.

We recommend contacting Bank of America’s customer support team for additional updates,” tweeted the Zelle Support account.

Also Read: A US Bank is Now Denying Customers Access to Money

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