Wall Street banks are getting smaller.
Around the world, banks have been cutting down on their workforce in the face of new regulation and declining profits, the Wall Street Journal reported Friday.
Since 2010, the number of workers in the front office has fallen by 20 per cent globally, according to a report from Coalition Ltd. These cuts are happening across the world’s largest investment banks. For the top ten banks, the number has fallen four per cent since last year, a total loss of 2,100 workers.
This is the fourth consecutive year of a declining workforce on Wall Street, continuing a trend in which bankers and traders are no longer on top.
Among the disappearing are bankers, traders, salespeople, and analysts. Meanwhile, banks are stocking up in cybersecurity, IT, and compliance departments.
Unfortunately for Wall Streeters, it looks like the new environment is here to stay. Although hiring usually follows a boom-bust cycle, new changes are forcing banks to continue to control costs, not just in hiring but in compensation as well.
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