BMO Capital Markets cuts jobs after business slows

The Bank of Montreal’s financial markets division is cutting jobs at its businesses and locations in response to weakening market conditions, according to people familiar with the matter.

The cuts represent a small percentage of the company’s staff, said one of the people, who did not provide a specific figure.

BMO Capital Markets manages its resources “dynamically,” which “involves making tough choices to optimize its workforce,” spokeswoman Kelly Hechler said in response to a question from Bloomberg News. Hechler declined to comment on job losses or individual departures.

Banks are downsizing amid falling debt and equity issuance, as well as weakness in some areas of business activity. Goldman Sachs Group Inc. plans to eliminate several hundred positions starting this month, marking its biggest streak of cuts since the start of the coronavirus pandemic.

Bank of Montreal, Canada’s fourth-largest lender, said capital markets revenue fell 20% from a year earlier in its latest quarter, and the bank recorded a severance package of $37 million (US$28 million) for cut-related activities.

Canada’s six largest banks have consolidated in recent years and could cut jobs, including in investment banking, which accounts for a large portion of their compensation spending, said Adam Dean, president and partner. founder of Dean Executive Search.

“Some of these businesses, including investment banking and M&A, will likely operate in a less foamy environment going forward,” Dean said. “Layer in the fact that, as public companies, our banks have to answer to analysts, and that means we can expect them to manage earnings, so cuts could be on the horizon.”

The situation is a stark reversal from less than a year ago, when the job market for capital markets talent was booming and banks raised bonuses in the biggest way in at least. less than nine years old.

“We’ve heard from various senior investment banking executives who are concerned about activity levels going forward,” Dean said. “As such, they are less confident than they were six or 12 months ago when it comes to making important hiring decisions, especially when it comes to committing. to candidates with high compensation expectations.”

Tech banker Jason Hutchinson is among those to leave BMO, according to people familiar with the matter who, like others, asked not to be identified because the information is private. Hutchinson was co-head of the global technology and business services investment bank, according to the bank’s website.

Hutchinson had been with BMO since August 2021 and worked in the San Francisco area, according to his LinkedIn profile. Prior to joining BMO, he was Managing Director of Telecommunications, Media and Technology Banking at Lazard Ltd. and Global Head of Technology Investment Banking at Houlihan Lokey Inc.

Hutchinson could not be reached for comment.