Top Wall Street banks have shed thousands of jobs in the first quarter of the year despite notching record profits, according to a new report.
Bloomberg noted that Wells Fargo, Citigroup and Bank of America fired over a thousand employees each. The former did so the most, cutting almost 4,200 jobs. JPMorgan and Morgan Stanley, in turn, hired staff. Last year, the main banks reduced the most amount of jobs in a decade.
The outlet went on to detail that the U.S.'s six largest banks recorded a net profit of $47.3 billion amid volatility sparked by geopolitical shocks.
"We're increasing our investments in areas like technology, including AI, as well as in advertising, while continuing to execute on our efficiency initiatives, which has resulted in 23 consecutive quarters of headcount reductions," said Wells Fargo CEO Charlie Scharf on a conference call.
The U.S. economy also remains resilient, according to Bank of America. The bank reported stronger-than-expected quarterly profits driven by a rebound in trading revenue.
The bank's leadership pointed to stable consumer spending and steady credit quality across its lending book as key indicators that economic conditions have remained broadly supportive. As reported by Reuters, the bank said trading activity in both equities and fixed income helped offset softer performance in parts of its lending operations.
CEO Brian Moynihan said the results reflect a "resilient economy," highlighting continued client activity across markets and relatively stable loan performance, according to remarks cited by CNBC in its coverage of the earnings release.
CNBC also noted that Bank of America's consumer business showed consistent demand trends, with spending holding up even as interest rates remain elevated, adding to signs that households have so far absorbed tighter financial conditions.
Moynihan also addressed the reduction in headcount, saying "AI gives us places to go. "We're still in the early stages of what all this will do. But we're seeing real benefits out of it today."
Originally published on IBTimes
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