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The biggest US banks cut their combined headcount last year by the most in almost a decade as executives sought to keep a lid on costs through what\u2019s typically the biggest expense line item.<\/p>\n
The six largest firms \u2014 JPMorgan Chase & Co, Bank of America Corp, Citigroup Inc, Wells Fargo & Co, Goldman Sachs Group Inc and Morgan Stanley \u2014 had a combined 1.09 million employees at the end of December. That\u2019s down about 10 600 from a year earlier to the lowest level since 2021. The last time the group cut so many jobs was in 2016, when headcount fell by roughly 22 000 from the preceding year.<\/p>\n
Efficiency is the name of the game on Wall Street these days. Most banks swelled their ranks during the pandemic-induced deal boom, only to have to cut jobs during a sharp slowdown beginning in 2022. More recently, the question has evolved into how artificial intelligence might replace humans.<\/p>\n
Wells Fargo was by far the biggest driver of reductions last year, as chief executive officer Charlie Scharf continued to make strides turning around the firm. Headcount at year-end was down more than 12 000 from a year earlier \u2013 to 205 198 \u2013 the lowest level since before it bought Wachovia during the 2008 financial crisis. In a conference call Wednesday, Scharf touted 22 consecutive quarters of reductions, and he has said previously that there\u2019s more to come.<\/p>\n
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Citigroup, working through a turnaround of its own, ended the year with 3 000 fewer employees than it had at the end of 2024. Bloomberg reported Monday that the bank would trim about 1 000 more jobs this week, and CEO Jane Fraser signalled additional cuts on Wednesday in a memo to employees.<\/p>\n
Still, some firms added to their ranks last year. Goldman, for example, grew headcount 2% to 47 400 \u2014 and cited higher compensation expense as a primary driver of its 11% increase in total costs. Morgan Stanley also ended the year with about 2 500 more employees, despite cutting roughly 2,000 in March.<\/p>\n
\u201cThere are continuing changes in terms of skills and so we will look at the types of heads that we need in different groups and divisions,\u201d Morgan Stanley Chief Financial Officer Sharon Yeshaya said in an interview Thursday. As for potential future reductions, she said there\u2019s \u201cnothing to talk about at this point.\u201d<\/p>\n
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JPMorgan, which has grown its headcount rapidly over the past five years, again added employees in 2025, though it did so at the slowest pace since the start of the pandemic.<\/p>\n
Bank of America, meanwhile, has been leaning on attrition. CEO Brian Moynihan said Wednesday that he expects the number of people his firm employs to drop this year, adding that \u201cwe can just make decisions not to hire and let the headcount drift down.\u201d<\/p>\n
Every time someone leaves, the bank assesses whether they need to be replaced, said Chief Financial Officer Alastair Borthwick.<\/p>\n
\u00a9 2026 Bloomberg<\/p>\n
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