Goldman and HSBC Fires Dozens Of Investment Bankers
Goldman Fires Dozens Of Investment Bankers
Following an abysmal quarter for investment banks around the globe, which saw salary cuts across the board as a result of sliding revenues in virtually all product areas, we forecast that the next logical step will be ongoing major layoffs of some of the world’s highest paid employees. This morning none other than the most insulated from global financial troubles bank confirmed just this when Bloomberg reported that Goldman had quietly cut investment banking jobs in the last few weeks, joining securities firms that are adjusting to a slowdown in deal activity.
According to Bloomberg, the bank eliminated dozens of managing directors, executive directors and vice presidents across the mergers and debt and equity capital markets teams. The cuts affected bankers in cities including London, New York and Hong Kong and are in addition to the bank’s annual 5 percent cull of employees deemed underperformers, the people said.
Earlier, the firm’s president Gary Cohn said on Tuesday that the same forces that helped fuel mergers and acquisitions in 2015, such as low interest rates and sluggish growth, remain in place today and that the outlook for the business remains bright. However, the future is far less bright to dozens of bankers who have now packed up and are trying to find a similar, well-paying job.Article Continues Below
As Bloomberg adds, CEO Lloyd Blankfein is embarking on his biggest cost-cutting push in years as the bank tries to weather a slump in trading and dealmaking. The job reductions follow a similar move in the firm’s trading division this year, driven in part by a 60 percent drop in first-quarter profit.
It’s not just GS.
HSBC, too, fired investment bankers today!
HSBC Holdings Plc is cutting senior investment-banking positions as part of the lender’s ongoing plan to reduce costs across the company, according to a person with knowledge of the matter.
The cuts reflect a gradual trimming of jobs, said the person, who asked not to be identified because the move hasn’t been announced publicly. Reuters earlier on Tuesday reported the reductions would affect dozens of employees.