JPMorgan may be quietly cutting analysts amidst Morgan Stanley's pain
With Morgan Stanley making some large and public job cuts, this looks like a good time for other banks that are trimming more judiciously to make small cuts of their own. JPMorgan may be among them.
Unconfirmed reports suggest that JPMorgan cut a handful of analysts in its London investment banking team today. The bank declined to comment.
Sources at Morgan Stanley say junior investment bankers seemed to suffer particularly badly as the bank cut jobs yesterday, with analysts and associates among those most impacted.
This is perhaps inevitable due to the shape of the investment banking hierarchy and the fact that juniors are more populous, but banks have an additional reason to trim juniors right now: the incoming analyst class.
Graduate recruits at most banks join midway through June, and unlike at the Big Four or Accenture and Bain, they haven't (to our knowledge) been asked to defer their arrival. Morgan Stanley's new graduate hires arrive in a few weeks' time and even Credit Suisse's new graduates are turning up as usual.
With deals still down, this gives banks an incentive to get rid of a few existing juniors before the new ones turn up. Jefferies has seemingly been at it too.
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