J.P. Morgan announced a hiring freeze today amidst the market downturn, expected economic difficulties, and coronavirus pandemic. We expect more global investment banks to follow suit.
Per media reports:
”Citing people familiar with the matter, Bloomberg reported that corporate and investment banking, consumer and asset- and wealth-management groups have been asked by the bank to review job postings and pull listings for roles that aren’t immediately needed.”
“The hiring restrictions come as JPMorgan and other financial institutions face a confluence of pandemic-caused conflicting events: a global economic shutdown that has made financial markets more volatile than at any time in history, damaged portfolios and returns, created extreme economic uncertainty and strained internal resources.“
Ok, fine. So hiring is put on hiatus and the bank is closing ranks as asset prices across the board have taken a beating. But J.P. Morgan has a bigger problem…
In conversations with recruiters and advisors at the firm, once the financial waters smooth out a bit, the amount of attrition expected from JPM Securities is substantial.
Some sources we spoke to think up to a third of the JPMS advisors could bolt for rival firms. Why? The talk of moving the platform to the private bank, depressed payouts, and ‘integration’ units taking accounts away from advisors with zero recourse – that’s why.
“We simply aren’t valued here in any meaningful way. We aren’t invested in either. They see us as simply part of the machine, rather than anything else… pushing JPM product as a near first and last resort.” – said an advisor actively in talks with rival firms.
A hiring freeze across the entire bank is a cool headline, but the reality of mass advisor attrition is worth noting as well.