Layoffs in the banking industry are set to slow this year after about 62,000 people in the sector lost jobs in 2023, the worst tally of employment losses since the global financial crisis.
The new year has started with one global banking giant announcing a job cut of about a third of last year's total.
Citigroup, the third-largest lender in the US, on Friday announced plans to cut 20,000 jobs within the next two years, raising questions about the health of the banking sector in the world's biggest economy.
However, analysts say despite mounting pressure on income amid slowing economic momentum, most global banks will not have to execute the same scale of employment cuts as last year.
“We think the worst is over when it comes to cutting jobs. Most of the job efficiency problems have been tackled and this year we expect [better] performance in the results from these banks,” Naeem Aslam, chief investment officer at Zaye Capital Markets, said.
New York-based Citi on Friday reported that it had swung to a $1.8 billion loss in the fourth quarter and that the planned cuts are part of its strategy to optimise costs.
The job cuts at Citi are part of its multiyear efforts to cut bureaucracy, increase profits and boost a stock that has lagged peers.
The bank plans to reduce its global workforce of 239,000 by about 8 per cent through 2026, chief financial officer Mark Mason told reporters.
Citi will also no longer count 40,000 jobs on its payroll when it spins off and lists its Mexican consumer unit Banamex in an initial public offering. It eventually aims to reach a staffing level of 180,000 employees globally, Reuters cited Mr Mason as saying.
Though Citi's announcement of massive job cuts “raises questions about whether it is a continuation of the previous year's trend”, it is probably not the case, Vijay Valecha, chief investment officer at Century Financial, said.
Twenty of the world’s biggest banks cut at least 61,905 jobs in 2023, according to calculations by the Financial Times. That compares with more than 140,000 jobs slashed by the same lenders during the global financial crisis of 2007-2008.
The biggest contributor to that figure last year was Swiss bank UBS. It let go of about 13,000 employees after it brought Credit Suisse into its fold following the acquisition deal in June to save its liquidity-starved fellow Swiss lender from collapse.
Wells Fargo was the only other lender who cut more than 10,000 jobs.
Citi, Morgan Stanley, Bank of America, Goldman Sachs and JP Morgan Chase, America's biggest banks, laid off 5,000, 4,800, 4,000, 3,200 and 1,000 employees, respectively, the report said.
Mr Valecha and Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, say layoffs last year were part of the purge of excess staff that lenders had rushed to hire when economies rebounded after the Covid-19 pandemic.
This year, the level of job losses will be far more contained.
“The bank layoffs should slow this year, given that last year's layoffs were also a correction of the massive hiring that the sector experienced during the post-pandemic months,” Ms Ozkardeskaya said.
“Yet the banking sector will see its income come under pressure due to Fed rate cuts, rising bad loans and slowing economies. Therefore, we could see the layoffs continue.”
The global economy is set to post the slowest half-decade growth in 30 years, with geopolitics and the raging conflict in the Middle East among key risks to the economic outlook, the World Bank said in its latest Global Economic Prospects report this month.
Most advanced and developing economies will grow more slowly this year and next than they did in the decade before the pandemic, with global gross domestic product slowing for a third year in a row to 2.4 per cent in 2024 before increasing to 2.7 per cent in 2025.
The slowing economy, coupled with a divergent economic landscape, will challenge the banking industry in 2024 as lenders' ability to generate income and manage costs will be tested in new ways, Deloitte said in its 2024 Banking and Capital Markets Outlook report.
“Multiple disruptive forces are reshaping the foundational architecture of the banking and capital markets industry,” Deloitte said. “Higher interest rates, reduced money supply, more assertive regulations, climate change and geopolitical tensions are key drivers behind this transformation.”
Banks are already showing signs of reduced profitability.
Wells Fargo saw its shares drop 3 per cent on Friday after warning that it expects its net interest income to slide between 7 per cent to 9 per cent in 2024, once the US Federal Reserve starts lowering interest rates.
While the New York-based lender reported that its fourth-quarter profit jumped 9 per cent annually to $3.4 billion, chief executive Charles Scharf warned that “significant uncertainty exists regarding eventual timing and extent of Federal Reserve interest rate actions”.
Bank of America, meanwhile, posted a net profit of $3.1 billion in the fourth quarter, which was down more than 56 per cent year-on-year.
JP Morgan Chase, the biggest US bank by assets, has also reported a 15 per cent annual slide in its fourth quarter net income to $9.3 billion.
Goldman Sachs and Morgan Stanley are scheduled to report their earnings on Tuesday.
At least half of 2023’s job cuts came from US lenders, where investment banking businesses struggled to cope with reduced business volumes.
The mounting cost and reduced profitability pressures have prompted Wall Street to “safeguard profit margins by reducing headcount”, Mr Valecha said.
“Investment banks particularly face a challenging scenario with a second consecutive year of plummeting fees as deal-making and public listings dwindled.”
However, despite a difficult year in terms of cost-cutting, banks have faith in the strength of the US economy.
“The US economy continues to be resilient, with consumers still spending and markets currently expect a soft landing,” Jamie Dimon, JP Morgan's chief executive and chairman, said in a statement.
A soft landing is a strategy by the Fed to bring down inflation without causing a recession, he said.
Bank of America chief financial officer Alastair Borthwick and Wells Fargo's Mr Scharf echoed confidence in consumers, saying the banks have plenty of firepower and their balance sheets were still strong.
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Ireland (15-1):
Ireland (15-1): Rob Kearney; Keith Earls, Chris Farrell, Bundee Aki, Jacob Stockdale; Jonathan Sexton, Conor Murray; Jack Conan, Sean O'Brien, Peter O'Mahony; James Ryan, Quinn Roux; Tadhg Furlong, Rory Best (capt), Cian Healy
Replacements: Sean Cronin, Dave Kilcoyne, Andrew Porter, Ultan Dillane, Josh van der Flier, John Cooney, Joey Carbery, Jordan Larmour
Coach: Joe Schmidt (NZL)
ENGLAND SQUAD
Eoin Morgan (captain), Moeen Ali, Jonny Bairstow, Sam Billings, Jos Buttler, Tom Curran, Alex Hales, Liam Plunkett, Adil Rashid, Joe Root, Jason Roy, Ben Stokes, David Willey, Chris Woakes, Mark Wood
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
Wicked
Director: Jon M Chu
Stars: Cynthia Erivo, Ariana Grande, Jonathan Bailey
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
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If you go
The flights
Emirates and Etihad fly direct to Nairobi, with fares starting from Dh1,695. The resort can be reached from Nairobi via a 35-minute flight from Wilson Airport or Jomo Kenyatta International Airport, or by road, which takes at least three hours.
The rooms
Rooms at Fairmont Mount Kenya range from Dh1,870 per night for a deluxe room to Dh11,000 per night for the William Holden Cottage.
MATCH INFO
Serie A
Juventus v Fiorentina, Saturday, 8pm (UAE)
Match is on BeIN Sports
Pari
Produced by: Clean Slate Films (Anushka Sharma, Karnesh Sharma) & KriArj Entertainment
Director: Prosit Roy
Starring: Anushka Sharma, Parambrata Chattopadhyay, Ritabhari Chakraborty, Rajat Kapoor, Mansi Multani
Three stars
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Dr Afridi's warning signs of digital addiction
Spending an excessive amount of time on the phone.
Neglecting personal, social, or academic responsibilities.
Losing interest in other activities or hobbies that were once enjoyed.
Having withdrawal symptoms like feeling anxious, restless, or upset when the technology is not available.
Experiencing sleep disturbances or changes in sleep patterns.
What are the guidelines?
Under 18 months: Avoid screen time altogether, except for video chatting with family.
Aged 18-24 months: If screens are introduced, it should be high-quality content watched with a caregiver to help the child understand what they are seeing.
Aged 2-5 years: Limit to one-hour per day of high-quality programming, with co-viewing whenever possible.
Aged 6-12 years: Set consistent limits on screen time to ensure it does not interfere with sleep, physical activity, or social interactions.
Teenagers: Encourage a balanced approach – screens should not replace sleep, exercise, or face-to-face socialisation.
Source: American Paediatric Association
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
JAPANESE GRAND PRIX INFO
Schedule (All times UAE)
First practice: Friday, 5-6.30am
Second practice: Friday, 9-10.30am
Third practice: Saturday, 7-8am
Qualifying: Saturday, 10-11am
Race: Sunday, 9am-midday
Race venue: Suzuka International Racing Course
Circuit Length: 5.807km
Number of Laps: 53
Watch live: beIN Sports HD
ORDER OF PLAY ON SHOW COURTS
Centre Court - 4pm (UAE)
Gael Monfils (15) v Kyle Edmund
Karolina Pliskova (3) v Magdalena Rybarikova
Dusan Lajovic v Roger Federer (3)
Court 1 - 4pm
Adam Pavlasek v Novak Djokovic (2)
Dominic Thiem (8) v Gilles Simon
Angelique Kerber (1) v Kirsten Flipkens
Court 2 - 2.30pm
Grigor Dimitrov (13) v Marcos Baghdatis
Agnieszka Radwanska (9) v Christina McHale
Milos Raonic (6) v Mikhail Youzhny
Tsvetana Pironkova v Caroline Wozniacki (5)
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
Company%20profile%20
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TRAP
Starring: Josh Hartnett, Saleka Shyamalan, Ariel Donaghue
Director: M Night Shyamalan
Rating: 3/5
Company info
Company name: Entrupy
Co-founders: Vidyuth Srinivasan, co-founder/chief executive, Ashlesh Sharma, co-founder/chief technology officer, Lakshmi Subramanian, co-founder/chief scientist
Based: New York, New York
Sector/About: Entrupy is a hardware-enabled SaaS company whose mission is to protect businesses, borders and consumers from transactions involving counterfeit goods.
Initial investment/Investors: Entrupy secured a $2.6m Series A funding round in 2017. The round was led by Tokyo-based Digital Garage and Daiwa Securities Group's jointly established venture arm, DG Lab Fund I Investment Limited Partnership, along with Zach Coelius.
Total customers: Entrupy’s customers include hundreds of secondary resellers, marketplaces and other retail organisations around the world. They are also testing with shipping companies as well as customs agencies to stop fake items from reaching the market in the first place.
Directed by: Craig Gillespie
Starring: Emma Stone, Emma Thompson, Joel Fry
4/5
Tips to keep your car cool
- Place a sun reflector in your windshield when not driving
- Park in shaded or covered areas
- Add tint to windows
- Wrap your car to change the exterior colour
- Pick light interiors - choose colours such as beige and cream for seats and dashboard furniture
- Avoid leather interiors as these absorb more heat
Brief scoreline:
Manchester United 2
Rashford 28', Martial 72'
Watford 1
Doucoure 90'
More coverage from the Future Forum
Final scores
18 under: Tyrrell Hatton (ENG)
- 14: Jason Scrivener (AUS)
-13: Rory McIlroy (NIR)
-12: Rafa Cabrera Bello (ESP)
-11: David Lipsky (USA), Marc Warren (SCO)
-10: Tommy Fleetwood (ENG), Chris Paisley (ENG), Matt Wallace (ENG), Fabrizio Zanotti (PAR)
TO A LAND UNKNOWN
Director: Mahdi Fleifel
Starring: Mahmoud Bakri, Aram Sabbah, Mohammad Alsurafa
Rating: 4.5/5
Stree
Producer: Maddock Films, Jio Movies
Director: Amar Kaushik
Cast: Rajkummar Rao, Shraddha Kapoor, Pankaj Tripathi, Aparshakti Khurana, Abhishek Banerjee
Rating: 3.5
