The recent announcements of job cuts at Barclays, Citigroup, and RBC have caused concern in the banking industry in London. While these cuts were not entirely unexpected, having three major banks making such announcements on the same day is worrisome. It raises the question of whether the good times are truly back and if job cuts are still ongoing.
However, it’s important not to blow things out of proportion. The timing of these announcements seems to be genuinely coincidental. Barclays had already revealed plans to cut 5% of customer-facing roles in its trading business and some dealmakers a month ago. RBC had also mentioned cutting as many as 1,800 jobs across the bank in its most recent results announcement. And Citigroup’s CEO, Jane Fraser, had already made it clear that the overall reorganization at the bank would involve job cuts.
In terms of scale, the cuts at Barclays represent only 3% of the relevant division, according to reports. Citi has placed 250 jobs under review in its UK operation, which is similar in proportion. RBC’s cuts, although not significant in London, will still have an impact. So, while the announcements themselves may not be big news, they serve as a reminder that there are many bankers receiving bad news due to structural reorganizations, performance-related cuts, and other factors.
Furthermore, the positive statements made by CEOs a few weeks ago about the deal pipeline may now seem premature. The risk of a US government shutdown and bad news from the Treasury Bond market eroding banks’ capital base with unrealized losses could impact future plans and strategies. This could make the Q3 board meeting strategy presentations unsettling for many banks.
In other news, a book by Michael Lewis reveals the questionable actions of Sam Bankman-Fried, a prominent figure in the crypto community. His behavior, even before his arrest, would have raised red flags in traditional finance. This raises the need for relationship advice in the crypto community – to avoid replicating the same mistakes and misconduct.
Overall, while the job cuts at Barclays, Citigroup, and RBC may not be entirely surprising, their collective timing raises concerns. It serves as a reminder that the banking industry is still undergoing significant changes and challenges, with many bankers receiving bad news. The impact on the labor market and future business strategies remains to be seen.