Wall Street's seemingly interminable layoff fever, contracted about a decade ago and never exactly fully cured, may finally be breaking now. Though the year is young, it's already shaping up to be a fine one for bankers who like both having and keeping their jobs.
Layoffs at financial firms in the US have dropped 74% in January this year compared to the same period last year, according to statistics from Challenger, Gray & Christmas. Job cuts fell from 998 in January 2016 to just 260 in January this year, the lowest level of layoffs seen since May 2013.
It's hard to know how much of this news we should ascribe to broader trends – years of post-crisis recalibration finally coming into maturity, say – and how much can be chalked up to the making-great-again of America and, by extension, Wall Street's profit expectations. But the latter is certainly playing a part, be it through more attractive trading opportunities, the anticipated dismantling of Dodd-Frank regulations or, to borrow a recent Lloydism, a “growthier” outlook.
That's not to say the pendulum has swung back fully, however.
The report revealed a negative job outlook within the financial industry, as new hire figures remained flat this month with no new jobs posted from Wall Street firms.
Still, things are moving in the right direction. Which leaves just one bank carrying the thankless burden of continued mass layoffs: Deutsche Bank. Already in the midst of layoffs so extensive that they had to be staggered so as not to overload the HR department, Deutsche still has thousands of job cuts planned. We'll have to wait until John Cryan is done taking care of business before we sound the all-clear.
Wall Street layoffs see sharp slow down in 2017 [The Trade News]