Global investment banks have started culling staff in their Australian operations over the past two weeks – mostly within junior to mid-tier ranks – as firms look to slash costs ahead of another tough year for dealmaking in 2023.
Goldman Sachs reintroduced its annual staff review in September, which weeds out under-performing bankers.Cuts at each firm’s local operations have not exceeded the “single digits” as a share of the workforce, but it’s the first time since the onset of the pandemic that banks have implemented lay-offs, people familiar with the situation at each bank said.
Banks increased their junior ranks in the past two years to manage a deluge of transactions, but are downsizing to cope with an expected lull in dealmaking in 2023. There is also a push to trim expenses because many banks hired senior deal makers in the past year whoCredit Suisse is planning to reduce headcount by 9000 people globally, in line with a reorganisation taking place under new chief executive Ulrich Korner.