The global banking sector is undergoing a seismic shift — and not in a good way for employees. From Wall Street to the corridors of India's financial institutions, job losses are mounting at an alarming rate. Major global banks including Citigroup, Goldman Sachs, HSBC, and UBS have announced significant workforce reductions. Closer to home, Indian banks such as Paytm Payments Bank, Yes Bank, and IndusInd Bank are also facing internal crises that have either already resulted in layoffs or are likely to do so soon. Together, these developments paint a troubling picture of an industry at a crossroads, caught between restructuring efforts, regulatory challenges, and the relentless march of automation.

At the centre of this global storm is Citigroup, which has unveiled a sweeping restructuring plan aimed at eliminating 20,000 jobs by the end of 2026, roughly 10% of its global workforce. The move is part of CEO Jane Fraser’s efforts to simplify the bank’s structure and boost profitability after years of underperformance. While framed as a strategic realignment, for thousands of employees, it translates to an uncertain future.

Similarly, Deutsche Bank, Germany’s largest lender, has confirmed plans to cut 3,500 jobs, primarily in back-office functions. These cuts are a continuation of the bank’s long-term effort to return to sustainable profitability following years of financial instability and legal troubles.

Swiss banking giant UBS is also undergoing drastic changes. Following its high-profile acquisition of Credit Suisse, UBS has already shed more than 10,000 jobs, with reports suggesting that more than half of Credit Suisse’s former staff have been let go during the integration process. Such extensive layoffs underscore the challenges of consolidating two major financial institutions in an increasingly volatile market.

Across the Atlantic, Goldman Sachs has begun laying off 3% to 5% of its workforce, targeting primarily vice-presidential roles. While these cuts are framed within the firm’s annual performance review cycle, the scale of the layoffs has raised concerns about deeper operational challenges amid declining deal-making revenues.

HSBC is no exception. Under the leadership of CEO Georges Elhedery, the bank is pursuing a $1.8 billion cost-cutting initiative, which includes an 8% reduction in staff costs. Part of this overhaul involves the closure of its international payments app Zing, a decision that is likely to affect around 400 jobs. These measures highlight the shifting priorities within global banking — away from experimental fintech ventures and towards core cost-efficiency.

Barclays, another prominent UK bank, has also joined the list of institutions trimming their workforce. It is reportedly cutting several hundred roles within its investment banking division, spanning global markets, research, and corporate banking.

Lloyds Banking Group, traditionally known for its extensive branch network, is also undergoing a digital transformation. The bank has announced it will cut around 1,600 branch roles, while simultaneously creating 830 positions in its Relationship Growth team, leading to a net reduction of 770 jobs. The pivot towards digital banking is not only a technological evolution but also a direct contributor to job displacement.

The trend is no different in Asia. Singapore’s DBS Group has laid out plans to cut 4,000 contract and temporary roles over the next three years. The move is attributed to the increasing use of artificial intelligence and automation in banking services. While DBS positions this as a forward-looking strategy, it raises concerns about the fate of employees in an increasingly tech-driven ecosystem.

Julius Baer, a Swiss private banking firm, has also announced a 5% reduction in workforce, amounting to around 400 jobs. The decision comes amid a broader revamp aimed at streamlining operations and reducing costs.

Indian banking sector faces its own reckoning

While the global narrative is largely driven by strategic restructuring and market consolidation, India’s banking job losses are tied more directly to regulatory scrutiny and internal mismanagement.

In March 2024, Paytm Payments Bank announced that it would lay off around 550 employees, or roughly 20% of its 2,775-strong workforce. This decision followed serious compliance issues flagged by the Reserve Bank of India (RBI), leading to regulatory intervention. The impact was not just reputational but also deeply operational, with the layoffs signalling the beginning of a larger shake-up.

Yes Bank, another major private player, initiated a restructuring exercise in June 2024 that led to 500 job cuts across retail and wholesale banking departments. Although the bank has presented this as a necessary step to improve efficiency, the human cost of this restructuring has not gone unnoticed.

The situation at IndusInd Bank is even more precarious. In March 2025, the bank disclosed serious discrepancies in its forex derivatives portfolio, which wiped off 27% of its market value in a single blow. The fallout was swift: the CEO and Deputy CEO both resigned amid mounting pressure. Although the bank has yet to confirm any layoffs, history suggests that such crises are usually followed by significant workforce reductions.

In February 2025, the New India Cooperative Bank was placed under the control of an RBI-appointed administrator after the discovery of a ₹122 crore misappropriation. The ensuing restrictions on operations have cast a shadow over the bank’s future. Although job cut figures have not been made public, the likelihood of redundancies remains high as the bank grapples with both financial and reputational damage.

The cumulative effect of these announcements reflects a concerning reality: banking, once considered a stable and prestigious career path, is no longer immune to large-scale upheaval. Whether it’s strategic restructuring, digital transformation, regulatory clampdowns, or outright fraud, employees are increasingly bearing the brunt of these institutional decisions.

What is particularly troubling is the lack of transparency and support around these layoffs. In many cases, employees are offered little in terms of transition assistance or retraining opportunities, especially in emerging markets where social safety nets are limited. Moreover, the rise of automation and AI — while beneficial for productivity — is accelerating job displacement at a pace that outstrips the ability of most firms to reskill their workforce.

Industry-Wide Implications

These layoffs also raise broader questions about the future of the financial services industry. As banks continue to digitise and streamline, the traditional skillsets associated with banking roles are being rapidly devalued. In their place, new roles are emerging in areas like data science, cybersecurity, and AI — but the transition is not seamless, especially for employees with decades of experience in legacy systems.

The trend also signals a shift in organisational priorities, where profitability and shareholder value are increasingly placed above employee welfare. The fact that many of these banks are turning record profits — even while cutting jobs — speaks volumes about the evolving nature of corporate responsibility in the financial sector.

Bank employees across the globe find themselves at a critical juncture. The combination of cost-cutting strategies, compliance-related crackdowns, and rapid technological change has created a perfect storm. For many workers, this means facing an uncertain future in an industry that is reinventing itself at an unforgiving pace.

As job cuts continue to mount, banks must ask themselves: can they truly build resilient, innovative, and customer-centric institutions without investing in the very people who form their backbone?

For now, the message to bank employees is clear — adapt quickly or risk being left behind.