UPDATE: Oct. 2, 2020:
Less than 24 hours after Goldman Sachs and JPMorgan Chase both said they were resuming job cuts — joining Citi and Wells Fargo in that stance — Bank of America CEO Brian Moynihan took time to reiterate that his bank will not.
“We’ve said no layoffs for this year and we’ll stick by that,” Moynihan told Bloomberg on Thursday. Moynihan was quick to initially make that vow in March, shortly after Morgan Stanley CEO James Gorman promised the same.
Moynihan said Bank of America is temporarily staffed “a little higher.” The bank hired 2,000 workers at the start of the pandemic to fill in for employees who were at high risk for contracting the coronavirus, and shifted more than 3,000 employees to new roles in its consumer and small-business divisions.
“We’ll keep letting attrition be our friend, as we say, and we’ll keep working the headcount into what we need,” Moynihan said.
Moynihan also took the opportunity to tout his bank’s progress on diversity, saying the Charlotte, North Carolina-based lender has “dramatically” increased representation of female, Black and Hispanic employees in management positions in the last few years.
“We have more work to do in some areas,” he said. “There’s plenty of talent in the company, and plenty of talent outside, and we acquire it all the time.”
The talent-level messaging may be a direct reference to comments that landed Wells Fargo CEO Charlie Scharf in hot water last week — namely, that “a very limited pool of Black talent” is hindering the bank as it aims to double Black presence in leadership roles by 2025. Scharf has apologized, but a number of financial institutions — such as Citi, Truist, Square and Ally followed the dust-up by detailing their own initiatives to fight racial inequality.
- Goldman Sachs is planning to cut 400 jobs — roughly 1% of its workforce, Bloomberg and CNN reported Wednesday. “At the outbreak of the pandemic, the firm announced that it would suspend any job reductions,” said Pat Scanlan, a spokesman for the bank. “The firm has made a decision to move forward with a modest number of layoffs.”
JPMorgan Chase also began a round of hundreds of job cuts, including about 80 positions in consumer banking and dozens more in other units, Bloomberg reported Wednesday, citing anonymous sources.
- The banks join Wells Fargo and Citi in resuming job cuts that were largely put on hold in the industry amid the coronavirus pandemic.