A dealmaking slump has forced investment banks to retrench again after a period of frenzied hiring. Job cuts are picking up pace and after last year's hefty bonuses, bankers are being handed doughnuts as fees have tumbled by more than 40%.

Only a year ago, bankers saw a 50% surge in salaries after a record-breaking 2021. A fierce talent war for top dealmakers led to huge pay demands from bankers switching jobs, pushing up compensation costs at Goldman Sachs, JPMorgan and Morgan Stanley to levels not seen for a decade.