As reported by Traders Magazine’s Michael Scotti, money manager AllianceBernstein let four equity traders go in New York last Tuesday, in a move industry observers say is unprecedented on the buyside, but standard operating procedure in the brokerage world.
Trading pros say such a firing became inevitable once money managers began a hiring spree of former sellside executives several years ago. On the sellside, it is common practice for new management to change personnel when it takes over. In such cases, the new heads of a sellside desk often bring in their own team of traders.
In recent years, the buyside has not been immune from downsizing in trading, as technology has allowed desks to do more with less. But several sources said they had never before seen a buyside trading desk take a divot that deep in one shot, losing four traders–nearly half the desk.