BMO, Wells Fargo and USAA are latest banks to report layoffs
BMO Financial Group, Wells Fargo and USAA have reported hundreds of layoffs to state officials in recent weeks as the U.S. banking industry continues to downsize.
The job cuts come as banking executives express caution about the industry's growth prospects in the second half of the year, and as some banks divest certain parts of their businesses.
Between April 2021 and July 2023, total employment in credit intermediation jobs, which include loan officers and tellers at depository institutions, fell by 45,000 to 2.67 million, according to census data.
BMO, which has a large presence in California through its acquisition of Bank of the West earlier this year, recently informed Golden State officials about plans for 248 layoffs. All of the jobs affected are listed as being based in the Bay Area, though the numbers may include remote workers.
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On Monday, BMO did not provide details about the types of jobs being cut or the specific reasons for the layoffs.
"We are working closely with affected employees to provide support and to ensure they are treated with fairness and respect," BMO spokesperson Scott Doll said in an email.
Doll reiterated the Canadian bank's commitment in 2021 to retain all front-line Bank of the West employees, as well as its statement at the time that it was not planning to close any Bank of the West branches in connection with the acquisition.
The conversion of Bank of the West accounts to BMO systems is scheduled for Labor Day weekend. The Canadian bank has bolstered its marketing efforts in California this year as it seeks to build brand awareness in the nation's most populous state.
Wells Fargo, meanwhile, informed Florida officials in July and August of its plans for 105 layoffs in Orlando. The bank did not provide details about the types of jobs being cut or the reasons for the layoffs.
"We regularly review and adjust staffing levels to align with market conditions and the needs of our businesses," the company said in an email. "We work very hard to identify opportunities for employees in other parts of the company so we can retain as many employees as possible. Where it's not possible, we provide assistance, such as severance and career counseling."
USAA, which offers banking, insurance and investment products, informed Texas officials in July of plans for 235 layoffs. The company listed the jobs as being based in San Antonio, where USAA has its headquarters.
USAA's banking unit was mostly spared from the latest job cuts, though centralized corporate functions such as information technology did see layoffs, according to a source familiar with the situation. Earlier this year, USAA also laid off 130 workers in its banking unit's real estate lending operation.
"USAA continues to hire across the company, including the bank, in line with changing business needs," a company spokesperson said in an email.
Also this week, the investment bank Morgan Stanley had plans to terminate certain New York City-based employees. In a notice filed with New York state, Morgan Stanley said it was "rightsizing due to external market conditions."
Those layoffs were part of a larger plan by Morgan Stanley — reported in May by CNBC — to eliminate some 3,000 positions. During the second quarter, the company recorded $308 million in severance costs in connection with that plan.
