The world’s biggest investment banks have already started to cut dealmaker jobs as revenues fall after last year’s hiring season.
Figures from data provider Coalition Greenwich suggest that the 12 largest investment banks in its analysis: Bank of America, Barclays, BNP Paribas, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, JPMorgan, Morgan Stanley, SocGen and UBS, have been cut. its ranks of investment bankers in the second quarter with brutal market conditions.
“We have already seen declines in workforce activity in the investment banking division [Q2 2022] as incomes continue to decline,” the Coalition report said.
Financial News has reported on recent job cuts at both Berenberg and UBS, while Credit Suisse has picked off some positions as part of a wider cost-cutting programme.
Dealmaker headcount reached 19,500 in the year to the end of March, according to Coalition, an increase of about 300 from 2021, as investment banks took in fees of about 130 billion dollars worldwide.
TO READ Hybrid work ruled out for bankers as job cuts loom
Last year, banks were embroiled in a fierce battle to retain and hire top dealmakers as fees rose across product lines including M&A, capital markets and leveraged finance. But through 2022, with rising inflation, rising interest rates and macro concerns such as Russia’s invasion of Ukraine all affecting confidence, deals have slowed.
Tough market conditions, particularly a 76% drop in equity capital markets revenue in the first half compared to a year earlier, according to Dealogic data, have fueled concerns about job cuts that now they are starting to see each other.
While the next round of cuts may be on the way, the number of traders has remained relatively constant at the world’s biggest investment banks over the past decade, even as they have made deep cuts in their sales and commercial labor.
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