Citigroup is shortening its investment banking analyst programme from three to two years to accelerate promotions and combat aggressive poaching by private equity firms. The change reduces the time to reach vice-president from six-and-a-half years to five-and-a-half, aligning Citi with most Wall Street rivals. This move comes as the industry faces a fierce war for junior talent, with top buyout firms historically hiring graduates years before their bank start dates.
JPMorgan chief executive Jamie Dimon has warned against accepting future-dated jobs, and his bank also shortened its promotion timeline. Citi will also end fixed-term contracts for North American analysts. Banks are increasingly focused on retaining talent for longer careers, especially as MBA programmes become less attractive and private equity offers fewer advancement opportunities.
The shift follows similar adjustments during the late 1990s dotcom boom and the 2021 pandemic dealmaking frenzy. Additionally, banks are investing in AI tools to reduce grunt work, making analyst roles more engaging and encouraging longer tenures.
Source: Financial Times Companies · Summarized by HeadlinesBriefing