Boutique investment bank Perella Weinberg Partners, which has been expanding over the past two years by hiring heavy hitters from larger rivals, is cutting some 7% of staff — or about 40 employees — as banks digest the full impact of the coronavirus crisis.

The independent advisory firm, which sits alongside bulge bracket banks on large advisory deals, informed staff of the decision to downscale this week, according to two people familiar with the situation. A source close to the bank said that the cuts were a result of a broader strategic shift to focus on core sectors, rather than a reaction to the slowdown in dealmaking in the wake of Covid-19.