Headcount only started increasing again in 2004.Ĭoben, who was a managing director in EMEA equity capital markets at Deutsche Bank during that period, says the cuts (which were replicated globally) blighted his tenure. Banks cut people very slightly first in 2001, then a lot in 2002 and then again in 2003. The chart below from the Wall Street Comptroller reflects what happens to employment in the New York securities industry when the technology media and telecoms (TMT) bubble burst. We were geared towards TMT and there were some very large teams in that area that were downsized tremendously."īeing like 2003 rather than 2009 may therefore not be a positive. "It was very difficult for people in the industry. After the bursting of the TMT bubble, it seemed there was a gradual grinding down of activity and round after round of job cuts," says Coben. “The worst period for banking job cuts was 2001-2003. It's more like the aftermath of the dotcom crash. While the financial crisis led to a one-off quick and brutal culling of headcount in 2009, Craig Coben, the former co-head of global equity capital markets at Bank of America, says 2023 isn't like that. However, one veteran banker says comparisons with the impact of the 2008 financial crisis on banking jobs are overblown. Given that revenues from equity capital markets (ECM) and debt capital markets (DCM) deals have ground to a halt in the US since the demise of SVB, banks are far more likely to fire than hire in the second quarter. As we observed earlier today, 2023 isn't looking that special for banking jobs.
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