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U.S. Banks Could Shed 200,000 Jobs in Decade in Efficiency Drive

  • Banks need to compete with fintech, Wells Fargo analysts say
  • Some branches shuttered by the pandemic will remain closed
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Mike Mayo Sees U.S. Banks Slashing 200K Jobs Over Next Decade

U.S. banks could cut as many as 200,000 jobs in the next decade as they try to boost efficiency to compete with fintech and other upstarts encroaching on their territory, according to Wells Fargo & Co.

The eliminations are likely to accelerate as the economy reopens following the Covid-19 pandemic and conditions normalize, Wells Fargo analysts led by Mike Mayo said in a note, adding that “this will be the biggest reduction in U.S. bank headcount in history.” Banks have little choice but to improve productivity in the face of stiffening competition from fintech, technology and retail firms, he said.