The biggest US banks cut their combined headcount last year by the most in almost a decade as executives sought to keep a lid on costs through what’s typically the biggest expense line item.
The six largest firms — JPMorgan Chase & Co., Bank of America Corp., Citigroup Inc., Wells Fargo & Co., Goldman Sachs Group Inc. and Morgan Stanley — had a combined 1.09 million employees at the end of December. That’s down about 10,600 from a year earlier to the lowest level since 2021. The last time the group cut so many jobs was in 2016, when headcount fell by roughly 22,000 from the preceding year.
Efficiency is the name of the game on Wall Street these days. Most banks swelled their ranks during the pandemic-induced deal boom, only to have to cut jobs during a sharp slowdown beginning in 2022. More recently, the question has evolved into how artificial intelligence might replace humans.
Wells Fargo was by far the biggest driver of reductions last year, as Chief Executive Officer Charlie Scharf continued to make strides turning around the firm. Headcount at year-end was down more than 12,000 from a year earlier — to 205,198 — the lowest level since before it bought Wachovia during the 2008 financial crisis. In a conference call Wednesday, Scharf touted 22 consecutive quarters of reductions, and he has said previously that there’s more to come.
Citigroup, working through a turnaround of its own, ended the year with 3,000 fewer employees than it had at the end of 2024. Bloomberg reported Monday that the bank would trim about 1,000 more jobs this week, and CEO Jane Fraser signaled additional cuts Wednesday in a memo to employees.
