Layoffs

The Internal Revenue Service has placed 50 senior IT leaders on administrative leave, as the union filed suit over a Trump order on collective bargaining.

The challenge comes on the heels of decisions from judges in Maryland and California ruling in favor of laid off probationary employees.

The Justice Department has asked the high court to intervene and halt reinstatements of federal employees who were fired by the Office of Personnel Management.

Goldman Sachs Group is planning to start its annual round of reductions earlier in the year after previous cuts took place in the latter half.

The Federal Deposit Insurance Corp. cut between 600 and 700 of its employees as President Trump's federal downsizing effort advances, fueling concerns over oversight and potential agency consolidation.

Some lenders are once again hiring mortgage lenders, but memories of the painful staffing cuts they were forced to make over the past two years remain top of mind.

The job reductions come as the card network focuses on emerging markets, artificial intelligence and other nascent technology over transaction volume.

The Hammond, Louisiana, company, which announced changes to its business strategy, cut 71 jobs and reduced its dividend to 8 cents per share.

The muni market finances the "fabric of our nation, and now, because of Citi's exit, the cost of financing for state and local governments is going to go up," a sell-side source said.

The recent round of terminations comes after the neobank cut 225 employees in January.

Offices impacted are located in Chicago, Cincinnati and Kansas City, a company representative said Wednesday.

The Philadelphia-based company will eliminate an undisclosed number of jobs as part of a plan to refocus on core business lines and markets, CEO Thomas Geisel said.

The layoffs come as the fintech is still working to close the SPAC merger it announced in August 2021.

The bank was already mulling headcount and compensation reductions in early September.

The fintech is also relying more heavily on its bank charter as rising interest rates make selling loans to investors more challenging.

The economy is poised to rebound, meaning loan demand and hiring will pick up, some observers say. Others argue that banks have plenty of reasons to cut jobs given industry consolidation, the growth of digital banking and expectations that low interest rates will persist.

Bank of New York Mellon, State Street and Northern Trust have even more reason to slash costs than commercial banks because their options to boost revenue are more limited. Problem is, they also have fewer cost-cutting options.

CEO Charlie Scharf disappointed investors by failing to provide either a detailed road map for long-term expense reductions or say when he might release such a plan.

Wells Fargo cut more than 700 commercial banking jobs as it embarks on workforce reductions that could ultimately number in the tens of thousands, according to people with knowledge of the matter.

The reductions will affect less than 1% of Citi's global workforce, and with recent hiring the overall headcount probably won’t decline, the company said.