UBS, Wells Fargo, other big banks cut over 60,000 jobs in 2023

The latest financial crisis has forced 20 of the world’s biggest banks to shed 61,905 jobs in the outgoing year.

This development, according to a report by the Financial Times, represents one of the most substantial reductions in personnel since the global financial crisis of 2008.

It also marks a drastic reversal of the aggressive hiring sprees witnessed during the post-COVID-19 pandemic.

The job cut is driven by the recent integration of Credit Suisse into UBS. This consolidation resulted in an immediate cut of at least 13,000 roles, with concerns of additional substantial job cuts looming in 2024.

The report noted that the second-biggest cutter of 2023 was Wells Fargo, which revealed earlier this month it had lowered its global headcount by 12,000 to 230,000.

The bank had spent $186 million on severance costs in the third quarter alone with 7,000 jobs jettisoned.

Citigroup cut 5,000 jobs while Morgan Stanley and Bank of America shed 4,800 and 4,000 jobs respectively this year.

READ ALSO: Wells Fargo CEO apologizes for ‘limited talent’ comment

Other entities affected by the financial crisis are Goldman Sachs (3,200) and JPMorgan (1,000).

Collectively, the big Wall Street banks cut at least 30,000 staff in 2023 after plummeting fees fueled by a decline in both mergers and acquisitions and initial public offerings severely impacted their revenue streams for the second consecutive year.

These widespread job cuts within the financial sector underscore the fragility of the post-pandemic recovery and its uneven impact across different industries.

The ripple effects are likely to be felt beyond Wall Street, potentially impacting ancillary services and local economies globally.

“There is no stability, no investment, no growth in most banks — and there are likely to be more job cuts.

“There are some very nice gifts being sent to bosses at the moment,” said Lee Thacker, owner of financial services headhunting firm Silvermine Partners.

By: Babajide Okeowo

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