Wall Street just posted a blockbuster trading quarter. It also handed out more than 10,000 pink slips. If that sounds contradictory, welcome to the AI era of banking.
Five of the biggest US banks, Bank of America, Wells Fargo, Citigroup, Goldman Sachs, and Morgan Stanley, collectively reduced their workforces by over 10,000 positions in the second quarter of 2026. That makes it the largest quarterly headcount reduction in at least six years, according to Bloomberg. The kicker: it happened alongside what’s being described as a blowout quarter for trading desks.
Record profits, fewer people to celebrate them
In Q1 2026, the six largest US banks shed roughly 15,000 jobs while collectively booking $47 billion in profits, an 18% increase compared to the prior year. Executives at multiple institutions have pointed to the same culprit: artificial intelligence is making their remaining employees more productive.
Wells Fargo has been the most aggressive cutter. The San Francisco-based lender slashed over 4,000 positions in Q1 alone, continuing a streak of more than 22 consecutive quarters of workforce reductions.
