Headcount in trading slashed 20% over last five years

Job reductions steadily increased between 2010 and 2015 in fixed income, currency and commodities and equities trading.

Jobs within sales and trading have decreased by almost 20% between 2010 and 2015 at top banks in the world, according to data from Coalition.

Coalition made the findings as part of its index of top global banks, which included data from BAML, Citi, JP Morgan, Goldman Sachs, Morgan Stanley, UBS and Deutsche Bank.

The index, which looked at figures between 2010 and 2015, reported headcount for traders in fixed income, currency and commodities (FICC) has been reduced significantly, by almost 30%.

Equities front-office headcount has also steadily decreased by 14% between 2010 and 2015.

Coalition explained the decreases reflected “a lack of revenue growth and low returns… This mainly affected FICC, with marginal refocusing in Equities.”

Reductions in headcount across trading have dominated headlines this year and have been prominent across several top global banks, including at Morgan Stanley, Credit Suisse and Goldman Sachs.

At the beginning of December in 2015, Morgan Stanley confirmed it would be cutting 470 staff from fixed income, currencies and commodities and a further 700 from back office support roles.

In November 2015, Credit Suisse cut 100 jobs in fixed income, and confirmed 1,800 staff will be relocated from London.

Additionally, The Trade reported a reduction in fixed income traders at Goldman Sachs earlier this month.

Challenging market conditions and low revenue growth are often highlighted as reasons behind the job cuts.

In its full year financial statement, Goldman Sachs said: “During 2015, Fixed Income, Currency and Commodities Client Execution operated in a challenging environment generally characterised by difficult market-making conditions, as well as low levels of client activity in mortgages and credit.”