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January 18, 2023 at 11:44 AM
What You Need to Know
- Certain roles will still be filled in units that have seen revenue growth, including wealth management.
Bank of America Corp. started telling executives to pause hiring except for the most vital positions, as it tries to keep a lid on costs and prepare for a possible economic downturn.
The move is an escalation of the company’s decision late last year to slow hiring after fewer employees decided to leave of their own accord, according to people with knowledge of the matter.
Bank of America will hold off on bringing in new workers until at least mid-year or until the economy shows signs of a turnaround, according to the people, who asked not to be identified discussing private plans.
Certain roles will still be filled in units that have seen revenue growth, including business banking, trading and wealth management, as well as technology jobs.
Finance firms are wrestling with rising costs and persistent inflation as Wall Street’s war for talent fades. Expenses have been a closely watched metric for investors who reward firms for increasing revenue faster than costs. In recent quarters, despite inflation, Bank of America has been able to increase revenue faster than expenses.
A representative for the firm declined to comment on the hiring pause.
Bank of America has shown no signs of moving toward job cuts, despite a pullback across the finance industry. Overall headcount at the Charlotte, North Carolina-based bank jumped to 216,823 at the end of 2022, up from 208,248 a year earlier and 213,270 in the third quarter, as hiring outpaced attrition.
