Citi, Morgan Stanley join Europe’s banks in hitting ‘pause’ on job cuts as coronavirus pandemic ravages the global economy
- Citigroup will suspend any planned job cuts, according to a person familiar with the matter, and Morgan Stanley Chief Executive Officer James Gorman told employees in a memo Thursday that the bank will not trim the workforce this year
- HSBC Holdings is putting on hold as many as 35,000 job cuts while Lloyds Banking Group halted its plans to trim around 780 positions
Thousands of bankers are set for a reprieve as Morgan Stanley and Citigroup joined European lenders in pledging to preserve jobs amid the widespread impact of the coronavirus.
Citigroup will suspend any planned job cuts, according to a person familiar with the matter. And Morgan Stanley Chief Executive Officer James Gorman told employees in a memo Thursday that the bank will not trim the workforce this year. The New York-based banks are seeking to reassure employees as the pandemic roils markets and raises the prospect of deep losses industry-wide.
“I am sure some, if not many, of you are worried about your jobs,” Gorman wrote. “While long term we can’t be sure how this will play out, we want to commit to you that there will not be a reduction in force at Morgan Stanley in 2020. Aside from a performance issue or a breach of the code of conduct, your jobs are secure.”
Wells Fargo, the firm with the biggest workforce among US banks, also suspended job cuts.
“We have paused initiating new displacements,” Beth Richek, a spokeswoman for the San Francisco-based lender, said Thursday in a statement. “We will continue to evaluate during this fluid situation.”
