Truist Financial sheds 5% of investment-banking staff amid dealmaking slump
Feb. 07, 2023 12:56 PM ETTruist Financial Corporation (TFC)GS, MS, DBBy: Max Gottlich, SA News Editor1 Comment
- Truist Financial (NYSE:TFC) is cutting about 5% of the workforce in its investment-banking unit as dealmaking continues to dry up given market volatility and an uncertain economic outlook, a company spokesman told Seeking Alpha in an emailed statement Tuesday.
- The investment bank is joining a sizable list of rivals who have been shedding staff in recent months, including Goldman Sachs (GS), Morgan Stanley (MS) and Deutsche Bank (DB).
- Amid the slowdown in dealmaking, TFC's investment-banking and trading income dropped about 32% to $257M in Q4 from a year ago, reflecting lower capital markets activity and lower merger and acquisition fees.
- The bankers at Truist (TFC) impacted by the job cuts will receive priority consideration for other roles within the company and get severance and job-search assistance in the event of termination, spokesman Kyle Tarrance told SA.
- TFC's total headcount stood around 50K people, he added.
- Previously, (Jan. 19) Truist Financial Q4 earnings beat, helped by loan growth and interest income.