Job cuts may be spreading from the tech and crypto sectors to Wall Street, Forbes reported. The bankers, brokers and traders may need to start worrying about upcoming layoffs. The confluence of the Federal Reserve Bank raising interest rates, runaway inflation at over 9.1% and general uncertainty over macro and geopolitical events may cause a slowdown in initial public offerings (IPOs) and other deal-making activities. CNBC reported that the securities industry is “limping into the traditionally slower summer months,” as the stock market is in bear market territory, and IPOs have plummeted by more than 90% compared to last year at this time. There hasn’t been the same steady flow of mergers, acquisitions, SPACs and other deal-making that were in full force up until fairly recently. The fate of bankers may follow the same trajectory as investment banks’ revenue, not unlike stock market charts that reflect a revision back to 2020 to 2021 levels. As hiring rapidly grew out of pent-up demand, banks may recognize that they have too many people for too few investment activities.
