Whenever one hears of an investment banker, one draws a mental picture of someone wearing an expensive suit and eating at ultra-luxurious restaurants. However, with the number of layoffs and the the market becoming more volatile, you may see more than a few casually dressed investment bankers at the local deli.
Bear in mind that the future of financial markets, and consequently that of investment banking, is inextricably linked to the direction in which the economy is headed. Therefore, turbulent economic times spell job insecurity for investment bankers. The latest credit crunch and economic downturn have jeopardized thousands of investment banking jobs. While Citigroup is preparing to layoff employees from its investment banking operations across the globe, Goldman Sachs has downsizing its investment banking division by 10%.
With bulge bracket firms continuing to announce layoffs, there are likely to be fewer job openings in the near future, resulting in fierce competition. Even when the number of job openings grow, the demand for investment banking jobs will remain high, since the potential for massive compensation and the promise of a lavish lifestyle help investment banks attract the best talent.
Investment banking is at the nexus of some of the most significant deals. Our prediction is that investment banking hiring will surge the moment the economy begins to bounce back. Now, once the positive movement begins, count on stiff competition continuing for those who choose to pursue a career in investment banking.