The Dwindling Landscape of Banking Jobs
For those in pursuit of a new career within the banking sector, the current environment is disheartening. Over the past decade, vacancies in London have plummeted by an astonishing 80%.
The labor market now brims with candidates, yet banks seem reticent, preferring to hold on to their existing workforce rather than recruit newcomers. Moreover, any new positions that do arise tend to avoid the once-vibrant high-volume sectors of previous years.
Recent disclosures from JPMorgan’s mini-investor presentation underscored the grim realities of the situation. The bank noted that its headcount has remained static, with growth confined to revenue-generating and front-office roles, which increased by only 4%.
Conversely, operations, support, and technology positions experienced declines of 4%, 2%, and a negligible 1%, respectively.
While JPMorgan chose not to specify the exact number of jobs within these categories, it is evident that front-office roles have never constituted the majority.
For instance, Deutsche Bank’s quarterly reports reveal that a mere 25% of roles tied to its investment banking sector fall within the front office, with the remainder enveloped in support and ancillary positions—areas that are similarly subjected to workforce reductions.
Despite a stringent control over headcount, the Financial Times highlights that JPMorgan continues to expend approximately $2 billion each week. What accounts for this expenditure, beyond the recruitment of high-ranking managing directors?
A significant portion is allocated to technology—as Business Insider reports, JPMorgan plans to invest $20 billion in technology this year, marking a 10% increase (or $1.9 billion) from 2025.
The aforementioned presentation detailed the allocation of this technology budget, revealing that a substantial $8.8 billion is directed toward the corporate and investment banking division.
An additional $1.2 billion will enhance “products platforms, features and capabilities,” which include advancements in machine learning and artificial intelligence, accounting for a notable 46% of total tech spending. Inflation contributes another $0.8 billion to this year’s upswing of $1.9 billion.
Questions arise concerning the purported efficiencies derived from AI integration. To date, the bank reported a modest $150 million in enhancements attributed to AI within its technology unit, while coding efficiency improvements have languished at a mere 10%.
In this context, it appears that JPMorgan’s significant technology investments are unlikely to precipitate additional hiring unless it is specifically for roles that directly generate client revenue, rather than enlarging the technology team.
Meanwhile, amidst the ongoing ramifications of the halted Centerview court case, discussions continue to surface regarding its implications.
The FT reveals that Kathryn Shiber raised inquiries concerning the conventional expectations surrounding banking hours and the necessity for perpetual availability.
An email she sent prior to her termination indicated her desire to “strategise on how we/I can be more efficient earlier in the day,” a sentiment that would likely have been rigorously examined, had the trial proceeded.
In light of the trial’s cancellation, junior bankers are left to navigate the expectations articulated in another email within the court documentation.
As Business Insider notes, during Shiber’s time as an analyst, her associate Timothy Ernst lamented the late hours he endured alone, reinforcing the prevailing adage that junior analysts are constrained to sleep only once seniors have approved their work.
In Other Developments…
JPMorgan has reported a robust quarter for trading and investment banking, forecasting trading revenues to surpass $10 billion—an unprecedented milestone. Investment banking fees are projected to rise by the mid-teens, according to Bloomberg.
In a remarkable feat, US banks generated $300 billion in profits last year, a narrative that starkly juxtaposes concerns about credit risks that have seemingly dissipated. As noted by the Financial Times, this trend is nothing short of extraordinary.
The private equity sector, however, faces a challenging landscape. Distributions as a percentage of net asset value dwindled to just 14% last year—the second-lowest figure since the post-2008 financial crisis era.
Private equity firms have exhausted their prime assets, with investors now cautious about committing funds except to vehicles that yield net internal rates of return exceeding 20%, as reported by Bloomberg.
According to PitchBook data, the software sector accounted for approximately 18% of US private equity deal value in 2025, marking a strategic area of focus for investors. Further details can be found in the Financial Times.
In contrast, Blackstone is experiencing expansion in the Middle East, where its local office is poised for growth akin to its Singapore branch, currently staffed by 100 individuals. This was detailed by Bloomberg.
At the CFTC, conditions are becoming increasingly untenable. Chairman Michael Selig finds himself performing the duties of five commissioners, compounded by an exodus of staff, as reported by the FT.
Despite a burgeoning workload, the FCA has opted to maintain its headcount, revealing the complexities facing regulatory bodies in (Financial News).
Lastly, IBM shares have taken a nosedive following Anthropic’s announcement regarding Claude’s potential for modernizing Cobol, as detailed by Bloomberg.
This paints a rather grim picture for the impending years. Attention must be paid to the human intelligence displacement spiral, where white-collar workers experience a decline in earnings potential, a reality that poses significant risks to the foundational stability of the mortgage market.
Consequently, underwriters may need to reassess the viability of prime mortgages, as stated by Citrini Research.
In personal news, 49-year-old Joshua Easterley of Sixth Street has announced his retirement as president and co-CIO following the death of his father. “My father passed away a little over a year ago—somewhat unexpectedly and complicated for me,” he shared.
Planning to prioritize family, he aims to address any perceived deficits with his three daughters and seek stability in his personal life, as reported by Bloomberg.
Meanwhile, BNP Paribas appeared to mandate office attendance for employees in New York, even amidst inclement weather, as noted by (Litquidity).
Source link: Efinancialcareers.com.
