JPMorgan Boosts EMEA Growth, McKinsey Restructures & SpaceX IPO Looms at $1T

Recent developments in investment banking and consulting suggest a clear shift in strategy by major financial institutions and high-growth private companies, driven by regulatory headwinds, rising operational cost pressures, and the pull of high-stakes deals. Below are the factors that seem to be shaping the landscape.

Regulatory reform as a lever for competitiveness: JPMorgan’s EMEA leadership under Hillery and Wiltz is acting with consciousness of the regulatory constraints on compensation, especially the EU bonus cap, which restricts variable pay for senior bankers to be no more than twice fixed salary. Wiltz has called for alignment with the UK’s post-Brexit regime, and JPMorgan has already lifted the cap for London-based material risk takers, enabling bonuses up to 10× base salary. [4][5]

These changes are not purely compensation puzzles—they’re strategic tools. By relaxing compensation constraints, banks aim to increase their ability to attract talent, motivate performance, and make assertive pitches to clients. In competitive financial centers, such as London and potentially increasingly the Middle East, this could shift where deal-making and advisory work is centered.

Internal demand and profitability pressures driving restructuring: McKinsey’s workforce reduction—particularly in non-client-facing and specialist technical support roles—reflects more than just cost cutting. It is a response to flattened revenue growth over the past several years, legal liabilities (notably $1.6 billion for opioid-related work), and competitive disruption, including from AI. [10][9] The firm is trimming headcount by over 10% and intensifying performance reviews to reduce underperformance. [9]

This bears watching for investment banks, which are likely benefiting from increased availability of consulting talent. In the immediate term, banks may see an influx of senior consultants, but there is also the challenge of integrating culturally different skillsets and selling capabilities into front-office roles.

Blockbuster IPOs and capital-raisings in private markets:** SpaceX is taking concrete steps toward going public, including a secondary share sale valuing the company near $800 billion and discussions with bankers for a 2026 IPO expecting $25–30+ billion to be raised. [8][6] If realized, this offering could become one of the largest in history and could reset expectations for valuations and capital flows in high-growth sectors like space infrastructure and satellite internet.