Bank of America has cut 150 junior banker positions within its investment bank, as confirmed by two sources. This move mirrors recent actions by JPMorgan and Goldman Sachs and aligns with their annual review process to eliminate underperforming roles. Despite these cuts, deal volumes have fallen below projections in the first half of the year.
Most of the affected junior bankers, including associates and analysts, have been offered roles outside of investment banking, according to one source. Nevertheless, some have chosen to depart instead, as noted by the other source.
The number of job reductions had not been previously disclosed. However, recent information indicates that in addition to the junior bankers, managing directors, directors, and vice presidents were let go, totaling about 1% of the workforce within the investment banking and global markets divisions globally.
The industry-wide trend of job cuts, including those at Bank of America, follows a similar pattern at Goldman Sachs, where a reduction of 3% to 5% of the workforce is expected.
Amidst a slow start in mergers and acquisitions for the year, Chris Connors, a principal at Johnson Associates, foresees further downsizing in the M&A sector by major global banks over the coming months.