(Bloomberg) -- Alantra Partners SA has cut staff numbers by about half at its German unit as the Spanish firm reorganizes its investment banking business following a drought in dealmaking.

Headcount at the firm’s Frankfurt office has slumped to less than 20, from 35 at the end of last year, according to a person familiar with the matter. The reduction reflects a reorganization under which Alantra decided to move its investment banking headquarters to London, a spokesman for the firm said.

“Since last year, Alantra has been strategically transforming its investment banking business, moving away from a purely country-driven model to a combination of key hubs and global sectors,” he said.

The changes come after a prolonged slump in dealmaking and initial public offerings across the industry. Alantra last month reported a 23% plunge in revenue for 2023, prompting it to cut performance-related variable compensation by 30% to skirt its first annual loss in over a decade.

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Jan Caspar Hoffmann, CEO of Alantra Germany, is stepping down from that role as of May 1, but will continue to work on client projects, particularly the different mandates currently under execution, the Alantra spokesperson said. Michael Maag, who joined from Morgan Stanley last year, will join the board of the German unit. 

Several Frankfurt-based senior bankers, such as Christoph Handrup, Maximilian Rohardt and Lars Rueckert, are said to be weighing their options, people familiar with the matter said. The three managers didn’t immediately respond to requests for comment.

Some departures followed a decision by Alantra’s German unit to award little or no variable compensation for the second consecutive year, according to people familiar with the matter. They asked not to be named discussing confidential information. 

Last year marked the worst for merger and acquisitions in a decade, with hopes of any meaningful recovery choked off by reluctant lenders and geopolitical conflicts.

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