Wave of Layoffs Widens: Banking and Technology Lose Thousands of Jobs – What Future for the Labor Market?

Telling numbers

Nearly 3,000 banking employees left the industry in just six months. According to Q2/2025 financial reports of 28 banks, the total number of employees at parent banks as of June 30 dropped by almost 3,000 compared to the beginning of the year – the steepest decline in the same period in many years. Some banks cut particularly deeply: LPBank -1,986 employees, VIB -1,186 employees, Sacombank -1,158 employees; many others reduced hundreds of staff.

The wave of downsizing extended beyond finance. In retail, Mobile World (Thế Giới Di Động) cut 1,353 employees (≈2%) in six months; in technology, FPT for the first time laid off 497 employees (≈1%), and VNG reduced 92 (≈3%).

A labor market survey (Vieclam24h, Q2/2025) found:

• Over 2,500 banking employees were laid off.
• 77.4% of businesses reported recruitment difficulties compared to the same period.
• 72.7% of laid-off workers returned to job hunting, but only 24.7% found suitable jobs in a short time.
  The survey sample included nearly 3,000 people (≈2,000 workers and ≈1,000 enterprises).

Internationally, instability also persists. In the first half of 2025, the global tech sector cut about 72,000 jobs; retail lost 64,000.

Local labor markets also show signs of strain. In Hanoi, 23.62% of unemployment benefit recipients in June 2025 came from finance, banking, accounting, and auditing (down from 28.39% in May but still high).

Why are layoffs spreading?

Banks and tech firms are entering a phase of operational restructuring, cost-cutting, and simultaneously accelerating digital/AI transformation – shrinking repetitive, operational, and administrative roles. HR experts note that downsizing is part of long-term strategic transformation, not merely a short-term response to business cycles.

Impact: Who is most at risk?

• Office staff in operations and traditional transaction roles are directly affected by digitalization of financial services and process automation. Job search time has lengthened; 34.9% of applicants spend 1–3 months, and 15% over 6 months, still unable to find work.
• Fresh graduates face disadvantages as companies raise standards, prioritizing candidates with digital, data, sales, and multi-channel consulting skills.

Bright spots & shifting directions

Although overall workforce size has shrunk, new hiring demand is emerging in value-shifting roles: data, cybersecurity, AI/ML, digital products, sales, and multi-channel customer experience. Banks and tech firms prioritize digital skills, data-driven thinking, and platform operation capabilities.

What future for the labor market?

Many forecasts suggest this shakeout could last another 2–3 years, tied to deeper digital transformation in finance and technology, alongside continued efficiency optimization. This means new hiring in white-collar roles will not return to the “boom” levels of the past, while digital-related roles are expected to flourish with business model transitions.

Policy implications & recommendations

• Large-scale reskilling/upskilling for affected workers, focusing on digital skills, data, and sales/service.
• Better matching of labor supply and demand in key industries, reducing job search time; provide short-term financial and psychological support for long-term unemployed workers.
• Workforce transparency from businesses (downsizing plans, new hiring needs by skills) to help workers orient their training and career shifts.

It is clear that the wave of layoffs in 2025 is not merely a short-term cost-cutting measure, but reflects the process of restructuring employment patterns. The labor market will continue to polarize sharply: repetitive roles will gradually shrink, while positions tied to data, technology, and customer experience are forecast to become the new drivers of job growth.