Truist Financial Corp. eliminated about 5% of its investment-banking division amid uncertainty surrounding the dealmaking environment, according to people with knowledge with the matter.
(Bloomberg) — Truist Financial Corp. eliminated about 5% of its investment-banking division amid uncertainty surrounding the dealmaking environment, according to people with knowledge with the matter.
The Charlotte, North Carolina-based company communicated the job cuts across all levels in late January, said one of the people, asking not to be identified discussing personnel changes. Dozens of bankers were affected by the dismissals.
“Truist continues to assess and adjust the size of our workforce on an ongoing basis,” spokesman Kyle Tarrance said in an emailed statement. “We’re hiring in some areas and rightsizing in others through natural attrition and planned staffing reductions.”
The move came amid job cuts by many of Truist’s rivals. Investment banks have been trimming staff amid a slowdown in dealmaking amid market volatility and a cloudy economic outlook. Morgan Stanley, Deutsche Bank AG and Goldman Sachs Group Inc. have all made similar cutbacks in recent months, while Bank of America Corp. told executives to pause hiring except for the most vital positions as it tries to keep a lid on costs and prepare for a possible downturn.
At Truist, investment-banking income slumped 37% last year, a decline that “compares favorably to overall industry fee performance,” Chief Financial Officer Mike Maguire said on an earnings call last month. He cited building momentum in the business, and said that strategic hiring has led to an improvement in the company’s league-table standings.
Truist bankers affected by the job cuts will get priority consideration for other roles within the company and receive severance and job-search assistance if dismissed, Tarrance said. Truist had more than 50,000 full-time employees at the end of 2021, the latest date for which figures are available.
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