Banks reverse post-pandemic hiring spree with 60,000 job cuts in 2023

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Twenty of the world’s largest banks minimize a minimum of 61,905 jobs in 2023, in line with Monetary Occasions calculations. That compares with greater than 140,000 jobs slashed by the identical lenders through the world monetary disaster of 2007-08.

Funding banks suffered a second consecutive 12 months of plummeting charges as dealmaking and public listings dried up, leaving Wall Avenue making an attempt to guard revenue margins by lowering headcount.

Elsewhere, the takeover of Credit score Suisse by UBS has already resulted in a minimum of 13,000 fewer roles on the mixed financial institution, with additional massive redundancy rounds anticipated within the 12 months forward.

“There is no such thing as a stability, no funding, no development in most banks — and there are prone to be extra job cuts,” mentioned Lee Thacker, proprietor of economic companies headhunting agency Silvermine Companions, including: “There are some very good items being despatched to bosses for the time being.” 

Read the full FT analysis, based on company disclosures and our own reporting.

4 extra high tales

1. The eurozone financial system is about for under modest development subsequent 12 months regardless of wages rising sooner than inflation for the primary time in three years, in line with an FT ballot of economists. Nearly two-thirds of the 48 economists surveyed by the FT mentioned they believed the only foreign money bloc was already in a recession. Here are more findings from our survey.

2. European plans of making a battery provide chain for electrical automobiles impartial of China face massive delays as firms give attention to the American market due to clear power subsidies, a high producer has warned. The top of Canadian battery supplies producer Novonix instructed the FT that the US Inflation Discount Act was luring producers away from Europe. More from our interview with Chris Burns.

3. Benjamin Netanyahu instructed Israeli troopers that the struggle towards Hamas won’t cease as he visited northern Gaza yesterday. “Whoever talks about stopping, there isn’t a such factor,” the prime minister mentioned, in an alternate printed by the federal government along with photographs of him in navy gear, assembly the troops and being briefed by Israel Protection Forces commanders. “The war will continue until the end.”

4. The variety of UK first-time housebuyers is about to hit a 10-year low as larger mortgage charges are forcing purchasers to change into extra reliant on their households for monetary assist. Whereas demand from individuals looking for to hitch the housing ladder stays excessive, fewer people can now afford to do so.

We’re additionally studying . . . 

Most-read story of 2023

“The McKinseys and the Deloittes . . . have no expertise in the areas that they’re advising in.” This quote from Mariana Mazzucato in an interview with the FT’s Henry Mance provoked debate when the story was printed in February, drawing each defenders of the consulting sector and readers who agreed with the College School London economist’s criticism that consultants and outsourcers have been hobbling the governments they suggested.