September 14, 2023
Banking International

Global Banks Trim Employment As Expense Tensions Mount

Global banks are in the process of cutting at least 5,000 jobs as profits at lucrative investment banking units come under pressure from volatility in capital markets and fast-rising interest rates.

Rapidly deteriorating economic conditions have also prompted lenders to build rainy-day funds to brace for potential defaults. 

BARCLAYS: Barclays cut its workforce in corporate and investment banking by under 3%, a source told Reuters on Nov. 8, weeks after reporting a 45% slump in merger advisory fees.

The British investment bank has performed well in recent quarters, especially in fixed income trading, but a blunder in the United States that saw it sell more securities than permitted has cost it hundreds of millions of dollars in penalties.

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