Global Banks Continue Reducing Workforce, With an Additional 80,000 Jobs Cut in 2019
According to a recent Bloomberg News report based on filings from companies and labor unions, banks around the world cut nearly 80,000 jobs in 2019, which some have suggested is a response to a slowing economy and financial firms’ continued adoption of digital technologies. More than 50 lenders last year unveiled plans to cut a total of 77,780 jobs, representing the most since the 91,448 lost in 2015. In total, from 2014 to 2019, the disclosed cuts were more than 425,000.
In Europe, ten banks made up the majority of the job cuts, with Deutsche Bank leading the pack at 18,000 fewer employees. This, in part, is due to the company’s ongoing efforts to move away from its investment banking lines of business. The other European firms on the list included UniCredit (-8,000 jobs), Santander (-5,400 jobs), Commerzbank (-4,300 jobs), HSBC (-4,000 jobs), Barclays (-3,000 jobs), Alfa-Bank JSC (-3,000 jobs), KBC (-2,100 jobs), SocGen (-2,100 jobs), and Caixabank (-2,000 jobs).
In the United States, Morgan Stanley was the latest lender to announce reductions, with roughly 1,500 cuts announced at the end of 2019—roughly 2 percent of its workforce.
Further cuts are expected over the coming 12-month period.