US banks eying layoff in preparation for economic downturn
Bank executives are beginning to unanimously warn of a mild to potentially severe recession in 2023!
as inflation continues to weigh on consumers, as a consequence, major US banks are gearing up for a holiday scrapping as they dampen their outlook for 2023.
Tweet on Ban layoff preparation
Bank executives are beginning to unanimously warn of a mild to potentially severe recession in 2023, as inflation continues to weigh on consumers by at least 20%.#inflation #recession #banks #ConsumerSpending pic.twitter.com/P56kFppDRx
— The_Journalbiz (@the_journalbiz) December 9, 2022
Insider news on Bank executives outlook
JPMorgan CEO Jamie Dimon pointed to slowing consumer spending as a reason for the weakening economy, and said that a pause after hiking interest rates to 5% might not be enough to curb inflation.
Bank of America CEO Brian Moynihan said the bank expects the US economy to contract in H1 2023, albeit just slightly.
Goldman Sachs’ David Solomon said the bank’s consumers are behaving cautiously as economic growth slows.
Changes to the workforce: Goldman’s Solomon also made comments regarding the tight job market, but banks seem to be following in the footsteps of the massive tech layoffs over the past few months.
Despite Solomon’s remarks, Goldman hinted at cuts in some business areas in preparation for the potential economic recession. The bank already cut hundreds of jobs in September.
Morgan Stanley just revealed that it cut 2% of its global workforce, or about 1,600 employees.
As banks continue along their digital transformation journeys, they’re looking for employees that can enable new kinds of digital growth. Discouraged tech employees could find some stability at banks.
