The phenomenon is hitting New Jersey as some of the world’s largest banks and financial institutions cut jobs to tighten budgets amid economic uncertainty.
According to data filed by the state, five financial institutions New Jersey announces layoffs by 2024: New York Mellon Corporation Bank, TD Bank, Prudential Financial, Citibank, JPMorgan Chase Bank.
These come on the heels of layoffs in the financial sector. held or announced Founded in 2023 by JPMorgan Chase Bank, Prudential Financial, TD Bank, and Charles Schwab.
Some of these banks, including Citibank and Charles Schwab, are cutting thousands or even tens of thousands of jobs.
Charles Schwab will cut 2,000 employees, and Citibank will cut 20,000.
“Banks are reducing back-office costs, which unfortunately includes reducing headcount and employee numbers,” said Christopher Marinak, director of research at financial services firm Janney Montgomery Scott. Stated. “Overall, bank earnings have been stable and generally not growing. Additionally, bank balance sheets have not expanded much this year.”
Is it one factor? The Federal Reserve has raised interest rates 11 times since the coronavirus pandemic. This has caused mortgage rates to rise for homebuyers, fewer people are taking out mortgages, and Wall Street has responded by cutting jobs, the people said. CNBC coverage.
As a result, the nation first unemployment The unemployment rate figures six months later show this.
“Banks are being cautious about new lending and looking to hold more capital as the Federal Reserve tightens standards and soon raises capital requirements,” Marinak said.
Rutgers University economist James Hughes told NorthJersey.com that white-collar jobs in banking and finance are saturated after a two-year hiring rush following the COVID-19 pandemic. He said it happened.
Headcount reduction in numbers
The following financial services companies have announced job cuts in New Jersey in 2023.
- JPMorgan Chase Bank: 63 jobs.
- TD Bank: 88 jobs.
- Prudential Financial: 46 jobs.
- Charles Schwab: 109 jobs.
The following are the announced layoffs for New Jersey’s banking sector through 2024:
- Bank of New York Mellon Corporation: 62 jobs.
- TD Bank: 54 jobs.
- Prudential Financial: 145 jobs.
- Citibank: 187 jobs.
- JPMorgan Chase Bank: 91 jobs.
JPMorgan, widely considered the nation’s largest bank, is one exception to this trend, having made some hires despite layoffs in New Jersey this year.
The state employs 12,000 people, 10,000 of whom are in Jersey City, and has 600 open positions, a spokesperson said. JPMorgan Chase Bank added 17,000 jobs last year, on top of 11,000 open positions, according to a company spokesperson. The company announced plans to lay off hundreds of employees in its mortgage division in 2022.
JPMorgan’s headcount has increased 21% since the start of the 2020 pandemic. annual report Said.
Daniel Muñoz covers business, consumer affairs, labor and economics for NorthJersey.com and The Record.
Email: munozd@northjersey.com; twitter:@Daniel Munoz100
