JPMorgan Chase and Bank of America, the two largest US banks by assets, expressed caution about job cuts in contrast to Goldman Sachs, where hundreds of layoffs could begin as soon as this month.
“You have to be very careful when there’s a little bit of a recession to start laying off bankers…because it will hurt the possibility of future growth,” Daniel Pinto, president and chief operating officer of JPMorgan, told investors at a conference. on Tuesday.
“If anything, in some environments like this, there may be some very, very important bankers that you couldn’t access or hire in the past who are now available for hire.”
That stance compares with plans by Goldman Sachs, according to a source familiar with the matter, to cut jobs this month after pausing the annual practice for two years during the pandemic. It is estimated that 500 people will be laid off.
Wall Street bankers are increasingly concerned about layoffs in the coming months. As the risk of a recession looms and the Federal Reserve raises interest rates to curb inflation, markets for business deals have dried up.
Despite the slowdown in investment banking, Bank of America is currently satisfied with its staffing levels, the company’s chief executive said Monday.
“We’re fine with our roster,” Brian Moynihan told Fox News in an interview. “I’m sure if we need to manage staff when people leave us for other employers, we just won’t fill every position, but we’re in good shape.”