The reductions account for a small slice of the more than 1 million people that the banks collectively employ. But the cuts come after the banks shrank headcount last year as well, feeding fears that even companies performing well won’t be looking to add staff as they pour money into artificial intelligence in an effort to become even more efficient.
“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,” Wells Fargo Chief Executive Officer Charlie Scharf said on a conference call with analysts.
The job cuts continued a trend from last year, when the biggest banks reduced the number of employees by the most in almost a decade.
To be sure, banks often make staffing decisions in the first quarter, around the time bonuses are due — and none of the executives this week linked their job reductions to AI. Still, last quarter’s cuts were far greater than a year earlier, when the lenders collectively reduced headcount by 707 employees.
