The Barclays Shake-Up: It’s Happening Again 😱
The financial sector is reeling once more, and this time, it’s because Barclays
announced its massive plans to lay off staff in its investment banking division (IBD), following similar moves by UBS, Credit Suisse, Goldman Sachs.
The cuts pan-industry are not unexpected though, given the slowdown in investment banking fees. FY 2021 witnessed more deals than 2022, resulting in a dive in investment banking fees by over 50% to $584 million 💸💸
In London, juniors in technology banking are amongst the cuts. In New York, analysts are losing their jobs, and investment banking coverage groups are being targeted too. Barclays is also letting go of M&A bankers, even though Q1 of 2023 has been rather good for them (they earned $264m in revenue).
However, there IS a silver lining in this situation!
A study by Barclays revealed that layoffs haven’t affected staff who specialize in ESG as asset managers, asset owners and banks continue to seek ESG talent. Barclays has ALSO been hiring juniors for entry-level IB roles such as corporate banking analysts in Singapore and trade finance analysts in London.
Will bonuses be worth it?💰
The average salary for London Associates is between £105k to £135k, depending on years of experience, and bonuses are up to 60% of base salaries. That’s better than some other institutions like Morgan Stanley, where associates reportedly received just 25%. So, it’s still worth applying!
What does this mean for finance internships and gradjobs?
Layoffs mean that the competition for IB roles will get MORE INTENSE. However, this should not discourage you from applying. We’re here to give you the INSIGHTS you need to get through this! Here are a few tips on navigating this storm:
➡️ Strengthen your technical skills – Banks are looking for more candidates with technical skills, so sharpen up your abilities in programmes like Python.
➡️ Network your socks off – Especially as headcount decreases, WHO you know will become more important. Build up your connections and get inside tips on applications, company culture, and more. The information you learn may help you land the job of your dreams
➡️ Keep your options open – We can’t stress this enough! Consider roles that leverage similar skills like advisory or even middle office positions to get your foot in the door
➡️ Train up niche sector knowledge – Teams like ESG will grow, so make you more interesting to employers
➡️Get coaching – Our team of specialists will work with you to enhance your interview skills, as well as help you with assessment centres, CV and cover letter drafting, and more. An experienced coach is invaluable, as their wealth of knowledge can give you the competitive edge you need.
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