It looks like the world’s biggest financial institutions are bracing themselves for a looming recession and workers are being affected.
Earlier this month, Bloomberg reported that Goldman Sachs laid plans to cut several hundred roles ahead of October. Experts predicted that the bank will report a drop in earnings of more than 40% this year.
“Goldman shares are down more than 10% this year and about 15% from a year ago,” per Bloomberg. “That compares with a 7.5% drop in the S&P 500 Financials index for the past 12 months.”
They aren’t the only big bank tightening the purse strings.
Reportedly Morgan Stanley has cut jobs in its corporate FX department in New York to cut down on redundancies in its global markets department.
Andy Saperstein, co-President and head of wealth management art Morgan Stanley told CNBC: “We’re feeling pretty good. We are a disciplined management team. We think about expenses all the time. We think about our expense ratios. Same holds true for our capital deployment. And right now in this environment, we have no immediate plans for layoffs. We’ll always tweak along the way, but right now we feel pretty good.”
Forbes reported that Wells Fargo announced plans to lay off 36 employees, bringing the bank’s total layoffs since April to more than 400.
The finance industry isn’t the only sector that’s seemingly downsizing its workforce.
Reports of mass layoffs in Big Tech has workers worried about the future of work as a potential recession looms.
ESSENCE reported earlier this year that tech companies both large and small have cut jobs, including Netflix, which cited the effects of the COVID-19 pandemic and over-hiring during rapid growth periods. Other tech giants like Robinhood, Twitter, Glossier and Better are a part of a growing list that are continually letting people go.
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