NEW YORK — Five of the nation’s six largest banks eliminated more than 10,000 positions during the second quarter of 2026, marking the industry’s largest quarterly workforce reduction in at least six years even as major Wall Street firms reported strong financial results.
According to a July 16 report by Bloomberg News, Bank of America, Wells Fargo, Citigroup, Goldman Sachs and Morgan Stanley collectively reduced their headcount by more than 10,000 employees between the end of March and the end of June.
The reductions represented the largest quarterly decline in Bloomberg’s employment data dating to early 2020. JPMorgan Chase was the only one of the six banking giants to report a modest increase in employment during the period.
The workforce reductions came despite strong trading activity that helped boost the banks’ second-quarter financial performance, Bloomberg reported.
Three Consecutive Quarters of Declines
The latest reductions continued a broader trend of shrinking employment at the country’s largest financial institutions.
Bloomberg reported that the banks had recorded three consecutive quarters of declining combined headcount, with executives increasingly focused on controlling expenses, improving productivity and using technology to perform work previously handled by employees.
The reductions also followed a first quarter in which the six largest banks collectively eliminated more than 5,000 positions despite generating $47.3 billion in net income, according to Bloomberg reporting published in April.
The continuing reductions have raised questions about whether advances in artificial intelligence will allow banks to sustain or increase profitability with fewer employees.
Wells Fargo Among Leaders in Job Reductions
Wells Fargo has been particularly aggressive in reducing employment.
According to a July 15 report by The Charlotte Observer, the bank ended the second quarter with approximately 197,000 employees, down 3,500 from the preceding quarter and approximately 15,000 from a year earlier.
The newspaper reported that Wells Fargo had reduced its workforce for 24 consecutive quarters, eliminating approximately 79,000 positions over six years.
The reductions came as Wells Fargo reported $22.62 billion in second-quarter revenue, an increase of 9% from a year earlier.
Wells Fargo Chief Financial Officer Michael Santomassimo told analysts the bank expected further workforce efficiencies.
“We expect that we should be able to run this company with less headcount than we’ve got today,” Santomassimo said, according to The Charlotte Observer.
He added that technology and AI were helping the bank achieve efficiencies more quickly.
Despite the overall reductions, Wells Fargo has continued hiring in selected growth areas, including branch banking, wealth management, commercial banking, investment banking, cybersecurity and AI development, the newspaper reported.
Bank of America, Citigroup Also Reducing Staff
Bank of America and Citigroup have also emphasized workforce reductions as part of broader efforts to improve efficiency.
Bank of America Chief Financial Officer Alastair Borthwick told analysts during the company’s second-quarter earnings call that its workforce management had been disciplined over the preceding six quarters, according to Bloomberg. The bank’s employee count was nearly 1% lower than a year earlier.
Earlier in 2026, Bank of America CEO Brian Moynihan indicated the company expected its workforce to decline as it expanded its use of AI and other technologies.
Banking Dive reported in January that Bank of America had approximately 213,000 employees and was increasingly using AI to automate operational and support functions.
Citigroup, meanwhile, has been pursuing a multiyear restructuring under CEO Jane Fraser, including a previously announced plan to eliminate 20,000 positions by the end of 2026.
Banking Dive reported that Citigroup executives expected additional workforce reductions as the company streamlined operations and completed work related to regulatory compliance.
AI’s Growing Role
The reductions are occurring as the banking industry increases its investment in artificial intelligence, raising questions about how many employees will be needed to operate financial institutions in the future.
According to Bloomberg, executives at several major banks have indicated they expect technology to allow their organizations to operate more efficiently with smaller workforces.
However, the overall decline in employment cannot be attributed entirely to AI. Banks have also cited restructuring, expense controls, employee attrition and the elimination of redundant positions as factors behind workforce reductions.
The latest figures illustrate a significant shift among the nation’s largest banks: Strong earnings and revenue growth are no longer necessarily accompanied by expanding payrolls, as institutions seek to generate more business with fewer employees.
