Banks are cutting jobs amid a slowdown in investment banking fees, with some firms accelerating their layoffs. Goldman Sachs will cut 3-5% of its workforce in May, while Bank of America is also reducing its investment banking team.
The decline in fees is attributed to geopolitical turmoil and tariff threats, which have taken a toll on the industry. According to Dealogic data, global fees earned across various markets are down nearly 12% so far this year compared to 2024.
Industry insiders are warning of another year of wary recruitment, with hiring described as “tepid” by some firms. While there is still activity in the market, it’s not at the same level as previous years.
Search firms and headhunters have expressed caution, noting that the market isn’t dead but rather slow. The slowdown has led to reduced job listings, making it challenging for those looking for work in investment banking.
Source: https://www.efinancialcareers.com/news/as-goldman-bank-of-america-cut-heads-complaints-of-tepid-hiring