Global banking giant continues to lay off employees
Since mid-2022, the horror of “layoffs” has begun to take place in the banking and technology industries. Many global giants have cut tens of thousands of positions. In the first half of this year, while the technology industry is “temporarily stable”, the banking industry is still witnessing continuous layoffs.
Most recently, on May 30, CNBC reported that Goldman Sachs is preparing for its third round of layoffs starting in September 2022 as Wall Street firms adapt to a decline in trading activity.
The company expects to cut fewer than 250 jobs in the coming weeks, a person with knowledge of the New York-based bank's plans said Tuesday.
Goldman Sachs, led by CEO David Solomon, was one of the first major Wall Street firms to cut jobs in September. It initially cut just a few hundred positions, then ramped up to more in January, shedding about 3,200 employees.
Many global banking giants such as Goldman Sachs, JPMorgan Chase, etc. continue to plan to cut staff. However, domestically, recruitment activities are still being increased. Illustrative photo
Morgan Stanley also announced about 3,000 job cuts this month and JPMorgan Chase cut about 500 jobs, CNBC reported last week.
But Goldman is more closely tied to the ups and downs of Wall Street than its rivals. A 16% drop in first-quarter trading and advisory revenue contributed to a disappointing start to the year.
Goldman’s CEO and some partners will be affected by the cuts, according to a person familiar with the matter who declined to be identified discussing the layoffs. The Wall Street Journal reported the news earlier Tuesday.
Goldman had 45,400 employees as of March 31, down 6% from the fourth quarter of 2022.
In Europe, Deutsche Bank is cutting 800 jobs in a new cost-saving effort despite reporting higher-than-expected profits in the first quarter.
Germany's biggest bank has been generating solid earnings at a time when banks in the US and Switzerland have been bailed out. The turmoil has left investors scrambling, customers withdrawing their deposits and the turmoil continuing.
Domestic recruitment still increasing
There has been a paradox between global banks and domestic banks. Since mid-2022, despite massive staff cuts by global banks, many domestic units have increased recruitment. And this has been repeated in the first quarter of 2023.
Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) is one of the leading units in increasing human resources. As of February 31, 2023, Vietcombank had 22,862 employees, an increase of 263 people compared to the end of 2022.
Along with the increase in staff, remuneration for employees at Vietcombank has also improved. In the first quarter of 2023, Vietcombank spent VND 2,626 billion on salaries and allowances, a slight increase compared to VND 2,114 billion in the same period last year.
Thus, on average, each Vietcombank employee is paid 115 million VND/person/quarter, equivalent to 38.3 million VND/person/month. Vietcombank is in the Top domestic banks with the highest salaries in the first quarter.
Lien Viet Post Joint Stock Commercial Bank (LPBank) also added its name to the list of units recruiting more. In the first quarter of 2023, the total number of employees at this bank increased from 12,203 to 12,282.
Income at LPBank improved significantly when the salary fund increased from VND552 billion to VND670 billion. On average, each LPBank employee is paid VND54.6 million/person/quarter, equivalent to VND18.2 million/person/month.
Orient Commercial Joint Stock Bank (OCB) also recorded no decrease in its staff. As of March 31, 2023, the total number of employees of the bank and its subsidiaries was 6,167, a slight increase compared to 6,052 at the end of 2022.
However, the total salary fund at OCB has decreased significantly. In the first quarter of 2023, salary and allowance expenses at OCB decreased from VND 441 billion to only VND 412 billion. On average, each employee in the OCB system has an income of VND 66.8 million/person/quarter, equivalent to VND 22.3 million/person/month.
It can be seen that in the first quarter of 2023, there are still many domestic banks increasing recruitment. However, the numbers also show that the gloomy picture may soon take place in the second quarter of 2023 when the number of recruited personnel only increases very slightly. Besides, the market has seen many banks cutting staff.
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