The ebbs and flows of the financial sector usually signal the state of our country’s larger economy. If recent news from Wall Street is any indicator of where we’re headed, there should be some cause for concern.
According to Bloomberg News, Morgan Stanley is set to cut about 2% of its workforce, or nearly 1,600 people. This move will put them next to Barclays Plc, Citigroup Inc. and Goldman Sachs Group Inc. and others that have started making cuts.
In an interview with Bloomberg TV, Bank of America Corp. CEO Brian Moynihan said they would be hiring fewer people to help manage the workforce they already have.
Wallstreet firms are also warning of pay decreases for their existing staff as well.
Goldman CEO David Solomon told Bloomberg TV “We will pay people based on the overall performance of the firm.”
The financial institutions join scores of tech companies that have made major cost-cutting moves in anticipation of a recession poised to settle in next years. As ESSENCE previously reported
After two years of mass hirings, tech firms both large and small have cut jobs, including Meta, Twitter and Netflix, which cited the effects of the COVID-19 pandemic and overhiring during rapid growth periods. Other tech giants like Robinhood, Glossier and Better are a part of a growing list that are continually letting people go.
Recent data from LinkedIn shows that fintech has also been trimming their workforce. Forbes reported that Chicago-based debit card company M1, reduced its team of 369 people to 349 in one month. Neobank reported a slight decrease in employees on LinkedIn as well. PointCard, a debit rewards startup reported 105 employees in January and now it’s down to 61.