EuroWire, NEW YORK: The six largest U.S. banks trimmed their combined workforce by about 10,600 positions in 2025, the biggest annual net reduction on Wall Street since 2016, according to year-end headcount totals reported by the firms. The decline left JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley with roughly 1.09 million employees at the end of December, the lowest combined level since 2021.
The staffing pullback came as banks continued to manage expenses after years of expansion that followed the pandemic-era rebound in markets and consumer activity. Compensation and benefits remain the largest line item for most major financial institutions, and headcount moves are one of the most direct ways to influence cost trends across trading, investment banking, consumer operations, technology and support functions.
The scale of the 2025 reduction stood out historically. The last time the same group of banks posted a larger combined net drop was 2016, when their total headcount fell by about 22,000. While the latest decline was smaller than that earlier contraction, it marked a clear shift from the relatively stable staffing levels seen across parts of Wall Street during the post-pandemic recovery.
Each bank reports employment figures in its regulatory filings and quarterly disclosures, and those totals include full-time and part-time staff across domestic and international operations. The combined figure can move for several reasons, including hiring, attrition, reorganizations, and the sale or wind-down of business lines. The 2025 net decline indicates that reductions and departures outpaced new hiring across the six firms over the full year.
Staffing declines alongside strong fourth-quarter results
The headcount reductions were reported as large banks released fourth-quarter earnings in January, with several firms describing improved profitability driven by higher net interest income and client activity across core businesses. Executives also addressed a range of issues affecting the sector, including the outlook for loan demand and consumer credit conditions, as well as policy debates that can influence bank revenues and risk management practices.
Some banks indicated that staffing adjustments remained part of their near-term operating plans, even as results improved in several business lines. Cost control and efficiency programs have been a consistent theme across the industry, as firms balance spending on technology, compliance and client services with shareholder expectations for returns and capital distribution.
Citigroup has been among the institutions undergoing the most visible internal overhaul in recent years. The bank has previously announced a plan to reduce its workforce by 20,000 roles by the end of 2026 as part of a broader effort to simplify the company’s structure and lower expenses. Other large banks have also made targeted workforce moves, including reductions in areas tied to fluctuating market volumes and consolidations in back-office functions.
For the industry as a whole, the combined headcount of the six biggest banks remains well above pre-pandemic levels, reflecting longer-term growth in consumer banking, wealth management and market-making operations. Still, the return to the lowest combined staffing level since 2021 underscores how quickly the largest firms can shift from expansion to restraint when expense discipline becomes a priority.
What the 2025 figure shows about Wall Street employment
The 10,600 net decline represents the difference between total hiring and total reductions across the year rather than a single round of job cuts, and it does not capture employment moves at smaller banks, regional lenders, hedge funds, private equity firms or asset managers. Even so, the six-bank total is often used as a benchmark because the group spans the largest consumer franchises, major trading operations and global investment banks.
The numbers also highlight that Wall Street employment can diverge from broader U.S. labor trends. National job growth and unemployment rates reflect the entire economy, while financial-sector staffing can be more sensitive to capital markets activity, regulatory costs and shifts in how banks deliver services. In recent years, large banks have accelerated investments in automation and digital platforms, while also reorganizing teams to focus on core client segments.
Going into 2026, the year-end figures provide a clear baseline for how the largest U.S. banks ended 2025: with fewer total employees than the year before, and with the steepest combined annual net reduction in nearly a decade. For workers across major bank hubs including New York and other U.S. financial centers, the data shows that staffing levels at the top of the industry moved decisively lower over the past year.