As companies downsize and restructure, American Banker is tracking these decisions to help our readers understand how their industries are adapting.
Banking, credit union, fintech industry layoffs: 2023
February 1, 2023 9:54 AM
Tidal, the music streaming service once owned by recording artist Jay-Z, laid off more than 10% of staff as part of a wider round of austerity moves announced last month by its parent company, Block (formerly Square).
Read more:Block to cut 10% of Tidal music service's staff
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TD Bank is laying off 3,000 full-time employees in a bid to reduce expenses and boost profits. The layoffs represent about 3% of the workforce at the Toronto bank and will affect all of the bank's business lines.
Read more:Why TD Bank is cutting 3% of its workforce
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Citigroup informed its employees November 20 of an upcoming round of job cuts and managerial changes — the next big step in CEO Jane Fraser's push to create a simpler, flatter company.
Citi did not say how many positions are being eliminated, or provide the total number of jobs it plans to cut between now and the end of March, when the company expects to complete its reorganization. The company declined to comment on aBloomberg News report saying that more than 300 senior manager roles, or about 10% of the jobs at that level, had been eliminated.
Read more:Citigroup notifies its employees about job cuts
Citi did not say how many positions are being eliminated, or provide the total number of jobs it plans to cut between now and the end of March, when the company expects to complete its reorganization. The company declined to comment on a
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Upstart has faced funding challenges for more than a year and has laid off more than 500 employees since last November.
Read more:Upstart earnings: 'Everything's going wrong,' analyst says
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Oportun Financial is laying off 18% of its corporate staff and scaling back some of its ambitions as part of a broader effort to slash costs.
Read more:Oportun will lay off 18% of corporate staff, eliminate products
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LendingClub announced it was laying off 172 employees, or 14% of its staff, marking the fintech's second major round of cuts this year.
Read more:LendingClub lays off 172 employees, blames rising interest rates
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PNC Financial Services Group laid off employees across both its geographic footprint and its business lines, the latest example of downsizing in the U.S. banking industry.
Read more:Layoffs at PNC cut across business lines and geography
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Headcount at Zions Bancorp will be 3% lower at the start of 2024 compared with the prior year, the bank's CEO said, joining a chorus of bankers who are using job cuts as a way to control rising costs.
Read more:Zions says job cuts will reduce headcount by 3%
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BMO, which has a large presence in California through its acquisition of Bank of the West earlier this year, recently informed Golden State officials about plans for 248 layoffs. All of the jobs affected are listed as being based in the Bay Area, though the numbers may include remote workers.
Read more:BMO, Wells Fargo and USAA are latest banks to report layoffs
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Wells Fargo informed Florida officials in July and August of its plans for 105 layoffs in Orlando. The bank did not provide details about the types of jobs being cut or the reasons for the layoffs.
Read more:BMO, Wells Fargo and USAA are latest banks to report layoffs
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USAA, which offers banking, insurance and investment products, informed Texas officials in July of plans for 235 layoffs. The company listed the jobs as being based in San Antonio, where USAA has its headquarters.
Read more:BMO, Wells Fargo and USAA are latest banks to report layoffs
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Goldman Sachs Group has started cutting managing directors across the globe, including some in investment banking as the firm reduces its headcount amid a deals slump.
Read more:Goldman Sachs is cutting about 125 managing directors globally
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JPMorgan Chase & Co. is cutting about 20 investment-banking jobs in Asia as deal flows remain muted, people familiar with the matter told Bloomberg.
U.K. fintech GoCardless will eliminate 135 roles, or about 15% of the total jobs at the company. The jobs will impact operations in the U.K., U.S., Australia and New Zealand.
JPMorgan Chase notified about 1,000 First Republic Bank employees that they aren't being given jobs — even temporarily — following its takeover of the failed lender.
Read more:JPMorgan tells 1,000 First Republic employees they'll lose their jobs
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Bank of America reduced its employee headcount by around 1,000 in the first part of April — and is planning more downsizing later this year — after its noninterest expenses soared in the first quarter.
Read more:BofA is cutting jobs in response to rising expenses
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Polygon Labs, the operator of an eponymous protocol used by developers to make Ethereum transactions quicker and cheaper, has cut 20% of its workforce, or around 100 employees, as part of a consolidation of business units.
Read more:Crypto technology firm Polygon eliminates 20% of workforce
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PacWest Bancorp is laying off around 200 employees at its Civic Financial Services subsidiary, a residential real estate company it bought as the housing sector boomed in 2021.
Read more:PacWest cutting 200 jobs at Civic real estate subsidiary
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Bank of America is planning to cut jobs in its investment bank, one of the last major holdouts to bow to expense pressures that have left no one immune. The number of reductions, which are still being discussed, could affect less than 200 bankers globally, according to people familiar with the matter.
Read more:Bank of America plans job cuts in its investment bank
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The fintech lender Oportun Financial Corp. announced a reduction of approximately 10% of its workforce alongside its preliminary fourth-quarter earnings.
"I remain confident that we will emerge from this challenging economic environment a stronger company than ever before, just as Oportun did following the pandemic and the financial crisis," said Raul Vazquez, CEO of Oportun, in a press release.
"I remain confident that we will emerge from this challenging economic environment a stronger company than ever before, just as Oportun did following the pandemic and the financial crisis," said Raul Vazquez, CEO of Oportun, in a press release.
The slump in the buy now/pay later market has hit Affirm hard, as the firm shed 19% of its workforce and posted earnings that fell short of analysts' expectations. "This is the right destination. We hired a larger team than we can sustainably support," said Max Levchin, Affirm's CEO, during a February earnings call.
Read more:Affirm lays off one in five workers as company resets strategy
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Fidelity National Information Services has so far eliminated 2,600 staffers as new Chief Executive Stephanie Ferris continues her strategic review of the financial-technology giant's business. The job cuts, which amount to roughly 2% of the company's full-time workforce, included about 1,000 contractors.
Read more:FIS's job cuts reach 2,600 as fintech giant's review continues
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PayPal will dismiss about 2,000 full-time employees, amounting to about 7% of the company's global workforce, and while the cuts will affect the whole company, the layoffs will hit some PayPal departments harder than others, according to CEO Dan Schulman.
Read more:PayPal to cut 2,000 jobs as e-commerce slides from pandemic peak
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New York Community Bancorp is slashing part of its newly acquired mortgage business in an effort to cut costs during what's expected to be another challenging year for mortgage lending.
Read more:New York Community quickly downsizes its newly bought mortgage unit
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The online consumer lender Upstart has laid off 20% of its staff amid persistent struggles to get enough funding from banks and the other purchasers of its loans.
Read more:Upstart lays off 20% of staff in latest round of job cuts
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BM Technologies, a financial technology firm that went public in 2021 after it was spun off by Customers Bancorp, said it would reduce its workforce by about 25% after it called off a deal to acquire a Seattle bank. The failed acquisition of First Sound Bank was originally billed as a bid to diversify and build a national lending platform.
Read more:Customers Bancorp spinoff BM Technologies to cut staff by 25%
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LendingClub tightened credit standards, cut a chunk of its staff and shifted its business model as rising interest rates and high inflation put pressure on its previous core strategy.
Read more:LendingClub explains recent layoffs, strategy shift in Q4 earnings
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Capital One Financial eliminated hundreds of technology positions, the result of the credit card giant spending years investing in systems meant to improve its efficiency, according to Bloomberg.
Read more:Capital One cuts more than 1,100 tech jobs
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The digital-asset exchange Crypto.com is reducing its global workforce by about 20%, the latest retrenchment in the sector following a collapse in virtual-coin prices.
Read more:Crypto.com cuts global workforce 20% as industry woes deepen
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Coinbase Global is firing about 950 employees, or 20% of its workforce, as the worsening crypto slump spurs another round of layoffs at the biggest U.S. digital-asset exchange.
Read more:Coinbase eliminates 20% of staff in latest round of layoffs
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Goldman Sachs Group is embarking on one of its biggest rounds of job cuts ever as it locks in on a plan to eliminate about 3,200 positions, with the bank's leadership going deeper than rivals to shed jobs.
Read more:Goldman to cut about 3,200 jobs this week after cost review
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Genesis Global Trading laid off more than 60 employees in its latest round of job cuts, amounting to roughly 30% of the troubled crypto brokerage's workforce.
Read more:Crypto brokerage Genesis eliminates 30% of staff in latest cuts
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Facing what CEO Alan Lane described as a "crisis of confidence" in the digital-asset industry, Silvergate Capital Corp. announced that it is laying off about 200 employees and halting plans to develop a blockchain payments network.
Read more:Silvergate lays off 200, rocked by 'crisis of confidence' in digital assets
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