The news: Major US banks are gearing up for a holiday culling as they dampen their outlook for 2023.
Execs see grim start to the year: Bank executives are beginning to unanimously warn of a mild to potentially severe recession in 2023 as inflation continues to weigh on consumers.
Changes to the workforce: Goldman’s Solomon also made comments regarding the tight job market, but banks seem to be following in the footsteps of the massive tech layoffs over the past few months.
Tech and bank jobs intertwine: As large tech companies and major banks reduce their headcounts, there are a few things to keep an eye on in 2023.
The big takeaway: As Q3 ended, banks were beginning to predict an economic downturn in the beginning of 2023, but their outlooks remained relatively positive. Now, banks are firming up their position on a downturn and potential recession and are making more marked preparations. But economic uncertainty will continue. Though inflation is putting pressure on consumers, unemployment levels overall remain low. Tech job cuts indicate that Big Tech doesn’t have a limitless supply of funds after all. And bank layoffs might be part of a shift to new talent that will better prepare banks for a digital future.
This article originally appeared in Insider Intelligence’s Banking Innovation Briefing—a daily recap of top stories reshaping the banking industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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