US: Major banks lay off employees en masse.

SGGP 21/10/2023 06:38

According to CNBC, a report indicates that the five largest banks in the United States cut a total of 20,000 jobs in 2023.

This decision goes against the backdrop of the Covid-19 pandemic two years prior, when demand for personnel surged as Wall Street ramped up activity. The hiring frenzy subsequently subsided following interest rate hikes by the Federal Reserve aimed at cooling an overheated economy , leaving banks feeling overstaffed amidst an unfavorable business environment.

Chris Marinac, research director at Janney Montgomery Scott Financial (USA), said that banks are having to cut jobs due to the uncertain growth outlook for 2024.

Layoffs in the financial sector could put pressure on the US labor market. However, given the increasing risk of defaults on corporate and consumer loans, banks will likely continue to cut staff aggressively next year.

Source: https://www.sggp.org.vn/my-ngan-hang-lon-sa-thai-nhan-vien-hang-loat-post710696.html