An analyst at Wells Fargo predicts that this is “the largest reduction in the number of Bank of America employees in history.” Banks are expected to cut. In the increasingly fierce competition between fintech and non-bank financial institutions, they strive to increase productivity and efficiency, thereby creating 200,000 jobs.
The U.S. banking industry will experience the largest layoffs
The Financial Times reported on Monday that Wells Fargo analyst Mike Mayo predicted that in the next ten years, Bank of America will lay off 200,000 jobs, or 10% of its total workforce. He explained:
This will be the largest layoff in Bank of America’s history.
Mayo said low-paying jobs are most at risk, such as those in branch offices and call centers, because banks have adapted to the new reality with the coronavirus pandemic. He added that as technology companies and non-bank lenders have gained market share in payment and lending businesses over the past few years, layoffs are necessary.
The analyst further commented: “If I give the kids some advice, I might say that you might not want to get involved in the financial industry.” He pointed out that technology and customer or customer-facing roles may be the only areas that will grow and emphasize “This may be a shrinking industry.”
“Digitalization has accelerated, and this has played a role in the power of some fintech and other technology providers,” Mayo said:
Banks must increase productivity to remain relevant. This means more computers and fewer people.
What do you think of the large-scale layoffs in the banking industry predicted by Wells Fargo analysts? Let us know in the comments section below.
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