The largest banks in America have collectively laid off approximately 20,000 employees since the beginning of 2023 due to rising interest rates in the mortgage industry, Wall Street deal-making fluctuations and increasing funding costs.

According to company filings, five of the largest banks in America are quietly cutting thousands of employees after a two-year hiring boom during the Wuhan coronavirus (COVID-19) pandemic. This hiring spree was abruptly curtailed as the Federal Reserve initiated interest rate hikes in 2022 to temper an overheated economy. As a result, banks became overstaffed, with fewer people getting mortgages and companies offering debt deals and mergers.

Wells Fargo and Goldman Sachs had the most layoffs, with both banks downsizing by approximately five percent this year. Wells Fargo had cut 50,000 jobs over the past three years, while Goldman Sachs had large-scale layoffs in January. Both banks are still expected to reduce their staff due to changes in their business focus, but unlike Wells Fargo, Goldman Sachs would only have a few layoffs.

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