A staggering 20,000 jobs have been axed in the U.S. banking sector, signaling a looming financial crisis.
America, technically already in a recession, is on the brink of a potential depression or something worse.
— KINGVALEX (@VALELORDX) October 31, 2023
Reports confirm that the Bank of Nova Scotia is letting go of about three percent of its global workforce, citing shifts in operations and changing customer preferences. They aim to streamline their operations.
This reduction amounts to approximately 2,700 jobs, based on the bank’s total workforce of 91,013 employees as of July 31, as reported by the Financial Post.
The Bank of Nova Scotia is just one of several banks trimming their workforce. In fact, five of the top six banks have contributed to the 20,000 job cuts in 2023 thus far.
Most of these cuts have targeted higher-paying positions, which are being replaced with more part-time, lower-paying roles. This enables financial institutions to amass hefty profits while leaving those who sustain the banks struggling.
It’s crucial to note that these 20,000 layoffs are just the tip of the iceberg. According to CNBC, “some of the deepest cuts are yet to come.”
Higher interest rates negatively impacting the mortgage business, coupled with widespread corruption on Wall Street, are reportedly causing banks to cut jobs, all so that the wealthy elite can add another yacht to their collection. The marvels of capitalism, indeed.
The Wuhan coronavirus (COVID-19) “pandemic” is also being held accountable for the situation, as it led to a two-year hiring spree fueled by a surge in Wall Street activities.
This hiring boom subsided after the Federal Reserve began raising interest rates to cool down an overheated economy. Banks found themselves overstaffed for an environment where fewer consumers sought mortgages and corporations issued less debt or acquired competitors.
All of these factors point to more turbulence in 2024. Chris Marinac, research director at Janney Montgomery Scott, describes the outlook as “really uncertain.” Rising defaults on corporate and consumer loans are setting the stage for even more layoffs next year.
“They need to find levers to keep earnings from falling further and to free up money for provisions as more loans go bad,” Marinac explained. “By the time we roll into January, you’ll hear a lot of companies talking about this.”
Wells Fargo and Goldman Sachs are reportedly leading in job cuts. Both have shed approximately five percent of their workforce this year, with more cuts looming.
Wells Fargo, in particular, is shifting away from the mortgage business. They’ve already cut around 50,000 jobs in the past three years as part of CEO Charlie Scharf’s cost-cutting strategy, and there are more cuts on the horizon.
Commenters have expressed strong opinions, with some suggesting that most banks should be shut down and their corrupt leaders arrested. Others predict the Federal Reserve’s collapse and the devaluation of the fiat U.S. dollar, with gold and silver prices surging as the U.S. loses its world reserve currency status, even if temporarily.