# JPMorgan, BofA cautious on job cuts as Goldman layoffs loom
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-09-14
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: JPMorgan and Bank of America Caution on Job Cuts as Goldman
Meta Description: JPMorgan Chase and Bank of America express caution about layoffs in contrast with other banks, highlighting potential implications on economic growth and talent
URL: https://financedigest.com/jpmorgan-bofa-cautious-on-job-cuts-as-goldman-layoffs-loomhtml

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By Lananh Nguyen and Saeed Azhar

NEW YORK (Reuters) -JPMorgan Chase and Bank of America, the two largest U.S. banks by assets, expressed caution about [job cuts](https://www.financedigest.com/icrc-to-cut-some-1500-jobs-as-humanitarian-budgets-seen-sliding.html "ICRC to cut some 1,500 jobs as humanitarian budgets seen sliding") in contrast with Goldman Sachs, where hundreds of layoffs could start as early this month.

You need to very careful when you have a bit of a downturn to start cutting bankers here and there because you will hurt the possibility for growth going forward,” Daniel Pinto, president and [chief operating officer](https://www.financedigest.com/iris-software-group-names-matt-tuson-as-chief-revenue-officer.html "IRIS Software Group names Matt Tuson as Chief Revenue Officer") of JPMorgan, told investors at a conference Tuesday. If anything, in some environments like this, there may be some very, very [top bankers that you could not access or hire](https://www.financedigest.com/5-steps-hiring-top-talent-youre-just-start.html "5 steps to hiring top talent when you’re just a start-up ") in the past that now they’re available to be hired.

That stance compares with plans by Goldman Sachs Group Inc, according to a source familiar with the matter, to [cut jobs](https://www.financedigest.com/telecom-italia-in-talks-with-unions-on-up-to-2000-job-cuts-in-italy.html "Telecom Italia in talks with unions on up to 2,000 job cuts in Italy") as early as this month after pausing the annual practice for two years during the pandemic. Goldman had a headcount of 47,000 at the end of the [second quarter](https://www.financedigest.com/dollar-pares-gains-as-us-growth-contracts-for-second-quarter.html "Dollar pares gains as US growth contracts for second quarter"), a 15% jump from the previous year.

[Wall Street](https://www.financedigest.com/weary-wall-street-cheers-improved-consumer-confidence.html "Weary Wall Street cheers improved consumer confidence") bankers have become increasingly concerned about layoffs in the coming months. As the risk of recession [looms and the Federal Reserve raises interest rates](https://www.financedigest.com/wall-st-indexes-mixed-treasury-yields-tick-up-as-higher-rates-loom.html "Wall St indexes mixed, Treasury yields tick up as higher rates loom") to curb inflation, deal markets have dried up.

JPMorgan’s upbeat view underpins the company’s approach to its workforce, said Lance Roberts, chief [investment strategist and economist at RIA Advisors](https://www.financedigest.com/5-tips-choosing-right-investment-advisor.html "5 tips for choosing the right investment advisor").

We will see if JPMorgan is right in their more optimistic views, but history suggests that with the Fed actively [hiking rates](https://www.financedigest.com/uk-economys-unexpected-bounce-spurs-more-boe-rate-hike-talk.html "UK economy’s unexpected bounce spurs more BoE rate hike talk") and reducing their balance sheet, the outlook is more cloudy with a chance of heavy rain,” Roberts said.

Despite the investment-banking slowdown, Bank of America is currently satisfied with its staffing levels, the company’s [chief executive officer](https://www.financedigest.com/host-analytics-appoints-chris-labruna-as-chief-revenue-officer.html "Host Analytics Appoints Chris LaBruna as Chief Revenue Officer") said on Monday.

“We’re fine with our headcount,” Brian Moynihan told Fox News in an interview. I’m confident if we need to manage headcount when people [leave us to go to other employers](https://www.financedigest.com/more-than-half-of-workers-are-open-to-leaving-their-current-employers.html "MORE THAN HALF OF WORKERS ARE OPEN TO LEAVING THEIR CURRENT EMPLOYERS"), we just won’t fill all the jobs, but we’re in good shape.

JPMorgan had to adjust salaries to deal with “way elevated” attrition in the first [half of the year](https://www.financedigest.com/an-apple-a-year-half-of-iphone-users-will-upgrade-to-the-iphone-7.html "AN APPLE A YEAR: HALF OF IPHONE USERS WILL UPGRADE TO THE IPHONE 7"), bank President Pinto said. While attrition is still high, it’s normalizing, he said. The [bank had more than 278,000 employees at the end](https://www.financedigest.com/testing-waters-hungarys-central-bank-flags-cut-in-top-end-of-rate-corridor.html "Testing waters, Hungary’s central bank flags cut in top end of rate corridor") of the second quarter, up 7% from a year earlier.

Citigroup declined to comment on [job cuts](https://www.financedigest.com/inpost-sees-better-margin-in-poland-plans-no-job-cuts-this-year.html "InPost sees better margin in Poland, plans no job cuts this year").

Moelis & Co referred Reuters to July comments from its chief [executive Ken](https://www.financedigest.com/wagamama-owner-restaurant-group-names-former-cadbury-executive-ken-hanna-chairman.html "Wagamama-owner Restaurant Group names former Cadbury executive Ken Hanna chairman") Moelis, who said the investment bank’s talent pipeline is strong and it plans to hire aggressively.

The boutique investment bank announced on Tuesday it was adding Igor Sokolovsky from Guggenheim Securities as a [managing director](https://www.financedigest.com/anya-libova-joins-apester-as-uk-managing-director.html "Anya Libova joins Apester as UK Managing Director") in New York to advise clients on mergers and acquisitions, specializing in the healthcare sector. \[L1N30K17Z\]

The word goes out right around Labor [Day to look at your headcount in a bad year,”](https://www.financedigest.com/explainer-international-womens-day-date-history-and-this-years-theme.html "Explainer-International Women’s Day: date, history and this year’s theme") Moelis said at the time, referring to large banks. It’s just the [way the cycle works.”](https://www.financedigest.com/five-ways-to-keep-your-head-above-water-while-working-from-home.html "Five ways to keep your head above water while working from home")

(Reporting by Lananh Nguyen and Saeed Azhar; additional reporting by Niket Nishant and Mehnaz Yasmin; editing by Jonathan Oatis and David Gregorio)


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