Major US banks including Bank of America, Wells Fargo and Citi are reshaping their workforces by combining selective hiring with long-term headcount reductions driven by AI adoption, cost pressures and regulatory progress.
Bank of America hired approximately 17,000 new employees in 2025, largely to replace roles left vacant through staff departures, as the lender continued to reassess its workforce needs amid growing use of artificial intelligence and digital tools. Chief financial officer Alastair Borthwick said the bank routinely reviews whether positions should be refilled when employees leave, reflecting a broader effort to balance staffing levels with productivity gains delivered by technology.
The bank reported improved productivity last year as a result of digitalisation and AI adoption, which has allowed it to expand client-facing roles while reducing operational support positions. Chief executive Brian Moynihan highlighted the audit function as an example of how AI-enabled capabilities could eventually support a smaller team, noting that the unit had expanded in recent years in response to heavier regulatory demands.
Alongside these changes, Bank of America recruited around 2,000 new graduates during the year, even as executives emphasised that headcount remains the largest driver of expenses. Moynihan said staff costs, including compensation, benefits, buildings and technology systems, represent the core of the bank’s expense base and are a key focus of ongoing efficiency efforts.
The long-term trend points to a leaner workforce in certain areas, particularly in consumer banking, where headcount has fallen sharply over the past 15 years from about 101,000 in 2011 to roughly 55,000 today. The bank spends close to $13 billion annually on technology, with around $4 billion directed towards new initiatives, including several hundred million dollars invested in AI across roughly 20 projects company-wide.
Similar themes are emerging across the US banking sector. Wells Fargo chief executive Charlie Scharf said the bank now has more tools than ever to improve efficiency, particularly through AI, as its workforce has declined by about a quarter since mid-2020. The lender ended 2025 with around 205,000 employees, although severance costs of $612 million pushed expenses higher in the final quarter. Scharf has indicated that further reductions are likely, describing AI’s long-term impact on staffing as “extremely significant” and pointing to natural attrition as a preferred approach.
At Citigroup, chief financial officer Mark Mason said the bank remains on track to cut 20,000 roles by the end of this year, with additional headcount reductions expected in 2026 and beyond. Chief executive Jane Fraser added that progress in resolving longstanding regulatory issues could also lead to certain positions being phased out once remediation work is completed.
