Imagine your school’s biggest clubs, after a really popular year where they had lots of events and new members (kind of like a “boom” for banks), suddenly find that things have slowed down and they don’t have as much money or activity. To save money, the club leaders might decide they don’t need as many student helpers or can’t afford as many big projects. That’s a bit like what’s happening on “Wall Street,” which is the nickname for the huge financial companies and banks in the U.S.
According to a popular Bloomberg article, the biggest U.S. banks made a big change last year: they cut about 10,600 jobs. This is the largest number of jobs eliminated in this industry in almost ten years, going all the way back to 2016! This means the total number of people working at these big banks is now the lowest it’s been since 2021.
The main reason? These banks are trying to “control costs,” or simply put, save money. They saw a lot of business and big deals happening during the pandemic, but now things have quieted down a lot. So, to keep their finances healthy, they’re reducing their staff.
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