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It was a harsh year for bankers, with a staggering 60,000 jobs slashed

The year 2023 was harsh for bankers, with a staggering 60,000 jobs slashed, echoing the distressing job loss figures from the Financial Crisis in 2008. Post-Covid, banks had accelerated their hiring to capitalise on the economic rebound, but were caught off-guard by a severe downturn in investment banking, with dealmaking and IPO fees plummeting.

This retrenchment was particularly pronounced on Wall Street, where banks made up at least half of the year's job cuts in a bid to protect their profit margins.

Meanwhile, in Switzerland, the ramifications of UBS's takeover of Credit Suisse were inescapable, leading to a loss of 13,000 positions as the merged giant aimed to streamline operations and reform its troubled investment banking sector.

These layoffs pose substantial economic risks. Banks, pulling back on their operations, could trigger a tightening in the availability of credit, which would have a domino effect on businesses and individual finances.

Moreover, this cautious stance is likely to impact global trade and investment by impeding the flow of international capital. The ripple effects of the banking sector's contraction could spread far, potentially destabilising related industries and shaking the broader labour market.

Coming up:

• The US has gone through 34 recessions since 1857

• Each Fed rate cycle has ended with a major financial failure

• This was the year 10-year Treasury yields didn’t move

• Barbie and Super Mario dominated the box office in 2023

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