More job loss / people news.
Bloomberg reports that JPMorgan Chase’s equities unit dismissed about two dozen U.S. traders and sales staff and cut pay 4% percent to more closely align it with revenue after the industry’s worst year for stock trading since 2008.
The bank also cut equity analysts in the U.S. last week, three people familiar with the move said, with one saying that about a dozen were affected. Equities-trading revenue fell 5% across the globe from 2011, the third-straight year of decline, according to industry analytics firm Coalition Ltd.
JPMorgan has pared equities jobs each year since 2008, former and current executives said. Equities-trading chief Tim Throsby has been reviewing the unit since around March of last year, these people said. Assisted by Marc Badrichani and Jason Sippel, they found that pay for equities traders and sales staff was too high compared with the unit’s revenue, the people said.
Revenue at the unit slipped 1.8% to $4.4bn last year, compared with a 4 percent gain in fixed-income trading revenue to $15.4bn. About three managing directors and 18 executive directors, including Andrew Crofton and Julian Plant, were cut, current and former executives said yesterday. Kevin Smart, a vice president, also left, two people said.
In the meantime, Reuters reports that JPMorgan's global head of equity proprietary trading has quit the investment bank to set up a hedge fund in Switzerland, the Financial Times has reported.
Deepak Gulati, one of the bank's star traders, will launch Argentière Capital sometime in the second or third quarter of this year, the financial daily quoted two people familiar with the plans.