In the wake of the Covid-19 pandemic, big banks stopped a decade-long trend of slimming employee ranks. That's over, and between 100,000 and 200,000 jobs could be cut in the US as banks resume their quest for efficiency driven by technology, according to analysts at Wells Fargo. From 2007 to 2018, the four largest US banks reduced headcount by nearly 300,000, while other large banks increased headcount by 64,000. But in the past two years, headcount has been relatively flat at all banks, Wells said in a 110-page research report. "We look for headcount reduction to resume in the next five years as both the largest and smaller banks increasingly rely on technology to reduce headcount and improve efficiency," Wells said. "We estimate the banking industry will reduce headcount by 100,000 over the next five years, but with continued growth in compensation per employee."
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