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Investment Banking

Why overstaffed teams and bad attitudes mean junior banker jobs are under threat

Analysts brought in over the past two years now face a harsh chapter in the realities of working in investment banking — surging inflation and economic headwinds have hit activity, causing fees to slump by more than 40%

For junior bankers, the current threat of redundancy is a U-turn in their fortunes from this time last year
For junior bankers, the current threat of redundancy is a U-turn in their fortunes from this time last year Photo: Getty Images

At the height of the 2008 financial crisis when banks fired tens of thousands of staff, junior bankers who were just weeks into the job were among the first to be shown the door.

Years later, banks faced a curious problem — they had a shortage of mid-ranking bankers and had to compete with rivals, law firms and Big Four accountancy firms for talent. So they learned an important lesson — don’t cut juniors.

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