



Recruiting News Network
Recruiting
News
OperationsThe Recruiting Worx PodcastMoney + InvestmentsCareer AdviceWorld
Tech
DEI
People
People on the Move
The Leaders
The Makers
People
People on the Move
The Leaders
The Makers
Brand +
Marketing
Events
Labor +
Economics
SUBSCRIBE





Workforce Reduction

How AI Revolution Is Driving 200,000 Layoffs On Wall Street

January 14, 2025

Workforce Reduction

How AI Revolution Is Driving 200,000 Layoffs On Wall Street

January 14, 2025

Photo by Chris Li on Unsplash

Advancements in artificial intelligence (AI) and automation are projected to lead to substantial layoffs and job eliminations on Wall Street. Based on a survey conducted by Bloomberg Intelligence, featuring input from Wall Street giants like Citigroup, JP Morgan Chase and Goldman Sachs, middle office and operations are most at risk - any job that involves routine or repetitive tasks is in the crosshairs. Industry analysts forecast that global banks may eliminate up to 200,000 positions over the next three to five years. In June, Citi reported that AI is likely to displace more jobs across the banking industry than in any other sector. About 54% of jobs across banking have a high potential to be automated, Citi said at the time. On Wall Street, chief information and technology officers anticipate an average net workforce reduction of 3% within their organizations. Notably, nearly 25% of the 93 respondents predict a more pronounced decline, estimating workforce reductions between 5% and 10%. Is your career ready for the shift? Read on to find out how to prepare.

The Real Reason Behind the Layoffs: Going Beyond AI

AI is simply the enabler, a tool that allows companies to capture what banks are built on: profit. The Economic Times of India explains it like this, referencing the BI (Bloomberg Intelligence) survey: In 2027, banks could see pretax profits 12% to 17% higher than they would otherwise have been — adding as much as $180 billion to their combined bottom line — as AI powers an increase in productivity. Eight in ten respondents expect generative AI to increase productivity and revenue generation by at least 5% in the next three to five years.

Despite the anticipated job reductions, some industry leaders emphasize that AI will augment rather than replace human roles. Teresa Heitsenrether, overseeing JPMorgan’s AI initiatives, stated that the bank's adoption of generative AI has so far enhanced existing jobs. Similarly, JPMorgan CEO Jamie Dimon has highlighted the potential of AI to improve quality of life, suggesting that while some positions may be eliminated, technology will lead to a transformation in work patterns and job functions. But probably not for the people who are out of work.

Moving Like Meta, with AI on Wall Street

In the technology sector, Meta CEO Mark Zuckerberg has indicated that AI could soon replace mid-level software engineers. In a recent interview, Zuckerberg stated that by 2025, AI could function as a mid-level engineer capable of writing code, potentially automating roles that currently command mid-six-figure salaries. In a wide-ranging interview on the Joe Rogan Experience, Zuckerberg says that the AI replacement strategy might be an expensive endeavor (at the outset) but the long-term potential (read: profit) of replacing these mid-level engineers is too big to pass up.

How to Prepare for the Impact of AI in Your Career

While Jamie Dimon offers a potential upside to the implementation of AI, the challenge becomes personal if your job is affected. And, in the coming years, every industry will be affected by the impact of AI. How can you prepare, and make sure your career is aligned with what companies really want?

‍

Read full article here

Advancements in artificial intelligence and automation are projected to lead to substantial layoffs and job eliminations on Wall Street.

What we're reading

‘We’re all fighting the giant’: Gig workers around the world are finally organizing

by
Peter Guest
-
rest of world

Gig workers are connecting across borders to challenge platforms’ power and policies

Got Zoom fatigue? Out-of-sync brainwaves could be another reason videoconferencing is such a drag

by
Dr. Julie Boland
-
The Conversation

I was curious about why conversation felt more laborious and awkward over Zoom and other video-conferencing software.

How to Purchase an Applicant Tracking System

by
Dave Zielinski
-
SHRM

Experts say the first step in seeking a new ATS should be to evaluate your existing recruiting processes.

View All Articles

Events
No items found.
View All Events
Related Articles

7 Hidden Costs Of Layoffs That Fortune 500 Leaders Overlook

May 12, 2025

Company layoffs are reaching historic highs—here’s what HR should know

May 2, 2025

© 2024 recruiting news network.
all rights reserved.



Categories
Technology
Money
People
TA Ops
Events
Editorial
World
Career Advice
Resources
Diversity & Inclusion
TA Tech Marketplace
Information
AboutContactMedia KitPrivacy Policy
Subscribe to newsletter
