Banks cut nearly 68,000 jobs worldwide so far in 2020

A Goldman Sachs trader Brendan McDermid / Reuters

Banks around the world have laid off 67,800 people so far in 2020, according to a tally made yesterday after financial giant Goldman Sachs announced a cut of 400 jobs (1% of its workforce).

The pandemic has accelerated the workforce cuts begun years ago, as part of a paradigm shift from physical to virtual business.

But the true count is likely higher than those nearly 68,000 layoffs - many were never even made public, especially at unlisted banks.

If this rhythm continues in the final stretch of the year, 2020 will end at levels similar to those registered in 2019, when the entities laid off 79,500 people around the world.

Both figures, however, pale in comparison to the 2015 record, when the cuts saw the departure of more than 91,000 employees.

More than 30 banks in Europe, North America, Asia and Africa have announced staff cuts this year.

Most of them cited the need to cut expenses, the poor outlook from the pandemic and the need to invest in technology and in adapting their business to the latest sector regulations as the main reasons behind the snips.

Banks based in Europe, those that have recovered the worst from the financial crisis and that have been burdened by sub-zero interest rates for years, take the cake of the layoffs.

To a large extent, this phenomenon has to do with the decision of the British HSBC to reduce its total payroll by 35,000 employees to reduce its costs by almost 4,000 million euros.

It was in February, when the pandemic was not yet a global phenomenon.