In an effort to control costs and prepare for a potential recession, Bank of America (NYSE:BAC) has instructed its managers to stop hiring except for the most crucial roles, Bloomberg reported Tuesday, citing people with knowledge of the matter.
Late last year, the bank slowed hiring when attrition decreased more than expected, they said. Bank of America (BAC) expects to keep the hiring freeze in place until at least mid-year or until the economy starts to turn revive, Bloomberg reported.
Hiring will be allowed for certain roles, in units that have experienced revenue growth, such as business banking, wealth management, and trading, as well as technology jobs.
Bank of America’s (BAC) headcount increased to 216,823 at Dec. 31, 2022, up from 213,270 at the end of Q3 2022, according to the company’s Q4 results.
Banks have been grappling with a slowdown in M&A activity, lower debt and equity issues, and a drop in demand for mortgages in 2022 when stocks and bonds slumped and financing costs jumped. With the weaker demand for financing and dealmaking, the Wall Street war for talent has diminished.
In December, media reports said Goldman Sachs (GS) was preparing to cut as many as ~4,000 jobs to offset sliding profit and revenue.