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World banks reported on further reductions

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World banks reported on further reductions
December 27
13:00 2019

Fifty banks have reported on upcoming layoffs. This may become the largest staff reduction over the past four years. The recession of the global economy, as well as introduction of new digital technologies are the reasons for the cut.

According to the companies and trade unions, this year about 50 banks will cut about 78 thousand employees. This is the largest figure since 2015. We recall that then the banks got fired 91.5 thousand employees. The largest cut share – about 80% – will come from European banks. They are under heavy pressure due to negative rates.

If you take into account the indicator of the previous year, then over the past six years, banks have reduced more than 425 thousand employees. It is logical to assume that the real figure is much larger, since banks do not always inform the public about their plans.

Morgan Stanley was the last bank to announce the cut. This is one of the largest banks in the United States. About one and a half thousand people will lose their jobs, which is about 2% of the entire staff.

Deutsche Bank AG will become the largest bank in Europe regarding the number of upcoming layoffs. As part of the implementation of the business reorganization program, about 18 thousand employees will be fired by 2022.

There is reason to believe that this year the reduction will continue too. That’s because the situation in the global economy remains consistently difficult, and European banks recover from the crisis much harder than American ones.

Last year, banks reduced about 60 thousand employees. Europe was the first regarding the number of layoffs.

 

The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group

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